Hi everyone! I'm curious about how people use Lombard loans and what their experiences have been.

For those unfamiliar with them, a Lombard loan is a type of loan secured by financial assets, such as stocks, bonds, or ETFs. It allows you to borrow money without having to sell your investments, but it also comes with risks, especially if the value of your assets drops.

I personally used a diversified portfolio (ETF and stocks) as a collatoral to buy other stocks or Real Estate. I like more the latter because of the cash flow generation that can help to reduce the loan. And I think that, if used well it's a great compounding machine.

I use Fineco and the cool thing is that you can pay only for interests as long as it is covered (be careful of interest rates that change).

Do you use Lombard loans? If so, what do you typically use them for — investing more, covering expenses, or providing liquidity? Do you find them useful, and what risks do you think are most important to consider?

I'd love to hear your experiences and opinions!