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Executives up their borrowing in shares hunt

Investec Private Bank has seen a 30 per cent increase in executives looking to borrow money from the firm to buy shares in their business this month, following the recent market volatility.

The strategic finance service, which typically lends over £1m per case, offers money to directors and large investors in public companies in order to bolster shares as well as lend money for liquidity when the cannot afford to sell certain shares.

However, with market volatility kicking in at the start of the month, 80 per cent of all August calls to the firm have been from executives looking to access further shares in their respective companies, with many believing that shares are currently undervalued.

Investec Private Bank’s David Drewienka says: “From our experience, it would appear that many executives believe that their companies are currently under-valued and that the current stock market volatility represents a good opportunity to purchase more shares.”

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