Hypo Loans

Discussion in 'UPS Partners' started by Shamrock, Nov 29, 2006.

  1. Shamrock

    Shamrock New Member

    Does anyone have information on the best hypo deal out there? :cool:
     
  2. retired

    retired Guest

    Bank of America has a good program, I set it up a few years ago and don't remember all of the particulars but their deal was much better than Wachovia's. I think Sun Trust had one too but that may not exist anymore.

    When I was shopping around I got a list of current programs from UPS, try asking shareowner relations.
     
  3. AirAffair

    AirAffair Guest

    In our district, Finance has a list posted on their website.
     
  4. wannabeups

    wannabeups Member

    What is a hypo deal?
     
  5. cheryl

    cheryl I started this. Staff Member

    If you have a sizeable amount of UPS stock, either a or b shares, banks will use it as collateral for a loan. The more stock you hypothecate the lower the interest rate...
     
  6. swampy1

    swampy1 New Member

    BofA requires that you borrow $100,000.00. I used 5th3rd in Louisville. They go for smaller amounts.
     
  7. rod

    rod retired and happy

    What's a SIZABLE amount?
     
  8. OldUPSDriver

    OldUPSDriver New Member

    I put up over 6K shares for a 100K loan
     
  9. moreluck

    moreluck golden ticket member

    The key point is....you still collect the dividends on those hypo'ed shares and you still own them. Hypothecation is a nice way to get some money out of your stock without actually selling the stock. Years ago, selling stock was totally discouraged and managers were frowned upon if they did sell. It is much easier to find hypo programs now that the stock is publicly traded. When it was privately held, hypo programs were few & far between.
     
  10. michael

    michael Chicago area

    Are the interest rates still tied to the LIBOR rates ?
     
  11. Slothrop

    Slothrop Member

    Bear in mind that hypo loans are now margin loans. Things ain't what they used to be.

    Given the state of UPS stock, be aware that a margin loan can be called at any time.

    The 15% capital gain tax will only be in effect for a short time longer. It may be better to 'bite the bullet' rather than hold on to this dog.

    How much longer until the Teamster contract? How will Wall Street respond to $30/hr + benefits + unfunded pensions for unskilled labor?

    Yes, UPS drivers are unskilled labor.

    Sell and buy JNJ if you want a dividend paying Blue Chip.

    I sold a portion of my holdings earlier in the year, and what I will pay in capital gains isn't close to what the stock would be worth if I'd held.

    PS--Remember you have to pay the hypo off after a set amount of time.
     
  12. retired

    retired Guest

    FYI Slothrop,

    You are misinformed that all hypo loans are now margin loans.

    I actually have 2 lines of credit, 1 is a margin line with Charles Schwab and the other is a hypo loan with B of A. The interest rate on the hypo loan is a much lower rate than a margin loan. According to my financial advisor using money from the hypo loan is actually cheaper than paying cash if you calculate the dividends, my tax rate and inflation. In my situation the margin line goes unused but is there just in case of emergency. The margin line has a more liberal 70% LTV (loan to value) while the hypo loan is at 60%.

    I'm not sure if you are getting bad information or if you are just making stuff up. Either way you are wrong.
     
    Lasted edited by : Nov 30, 2006
  13. Slothrop

    Slothrop Member

    You must have had the hypo for some time. I don't believe that is the case with a new line of credit. In any case you'd be better off to sell this dog.
     
  14. 1980

    1980 Member

    {How much longer until the Teamster contract? How will Wall Street respond to $30/hr + benefits + unfunded pensions for unskilled labor?

    Yes, UPS drivers are unskilled labor }

    Unskilled yes, but work harder than 99.9999 % of the blue collar workers out there.Your riches were made on those drivers backs with a little help from Casey's vision.Such a great compensation package but it didnt cut it for you? Did it.
     
  15. retired

    retired Guest

    I switched to B of A about a year ago. At that time there were several different financial institutions offering UPS hypo programs. I haven't shopped around this year but I don't know of any reason for a change in the marketplace.

    Maybe you didn't own enough stock or your personal credit rating wasn't high enough to be eligible for a hypo loan and you were redirected to margin loans. Either that or you are a simple UPS stock troll that wants to bash the stock because of some personal agenda.
     
  16. Jones

    Jones fILE A GRIEVE! Staff Member

    I think you're missing Slothrop's point. Wall Street doesn't care how hard we work, they only care that our job doesn't require any any formal training, like a college degree or trade school. To someone who is just looking at the financials in order to make a stock buying decision, $28 an hour seems like an awful lot for a job whose only initial requirements are that you be 18 years old with a clean driving record. It's one of the reasons our stock isn't doing much these days.
     
  17. 1980

    1980 Member

    Hypo

    Sorry for getting off track here but Wall Street cares about earning growth above all. If Fed Ex and DHL were not around and we made 50 dollars an hour with the company growing earning in the high teens the stock's PE would again expand .:w00t:
     
  18. Slothrop

    Slothrop Member

    That must be it. Or perhaps that I've converted to 'B' shares so that I can dump this pig. Personally, I wish the stock would go to $90/share, but I think $70 is more likely, especially with the Teamster contract looming.

    I wonder if the original poster has 'A' shares. If he did, he would know to go to his division manager for that advice.
     
  19. Regional

    Regional Guest

    Stocktroll, B shares are eligible for hypothecation too, unless you don't own the minimum amount, your income is too low or you have bad credit.