> A margin loan is very different to the kind of financing agreement a company will enter into
The original post you were replying to talked about founders borrowing against their company's shares as individuals, not companies.
> it is unlikely that a lending institution will accept shares as collateral due to the wrong way risk
That's my point: Nobody's getting a special financing deal on their company stock as individuals to eliminate their margin call risk.
Multi-billion dollar hedge funds get a personal contact at the bank, but even they will get margin-called borrowing against stocks as collateral if it goes against them.
The original post you were replying to talked about founders borrowing against their company's shares as individuals, not companies.
> it is unlikely that a lending institution will accept shares as collateral due to the wrong way risk
That's my point: Nobody's getting a special financing deal on their company stock as individuals to eliminate their margin call risk.
Multi-billion dollar hedge funds get a personal contact at the bank, but even they will get margin-called borrowing against stocks as collateral if it goes against them.