What a securities-backed line of credit (SBLOC) is.
The retail-brokerage form of securities-backed lending: a revolving line of credit secured by the securities you already own — the same core idea as a Lombard loan or a stock loan, packaged as a line of credit rather than a bespoke term loan.
A line of credit secured by your portfolio.
A securities-backed line of credit (SBLOC) is a revolving line of credit secured by a pledge of the eligible securities in an investment account. The borrower draws cash against a percentage of the portfolio’s value, keeps ownership of the securities and their dividends and upside, and repays on a flexible schedule. It is the retail-brokerage packaging of securities-backed lending: the same core idea as a Lombard loan or a stock loan, offered as a line of credit rather than a bespoke term loan.
The appeal is the same as the institutional instrument: liquidity without a sale. Selling to raise cash crystallises a capital-gains event, ends the position, and forfeits the upside. An SBLOC leaves the securities in place — you borrow against them without selling — and releases cash against them instead. What differs is the packaging: a line of credit is revolving, standardised, and quick to draw, where a bespoke stock loan is negotiated term-by-term for a concentrated or restricted position that a standard SBLOC programme will not take.
| Feature | How an SBLOC works |
|---|---|
| Instrument | A revolving line of credit secured by a pledge of eligible securities in an investment account. |
| Also called | The retail form of securities-backed lending; a Lombard loan or stock loan is the bespoke term-loan equivalent. |
| How much | An advance rate (loan-to-value) on the eligible assets — more for liquid, diversified holdings; less for concentrated or volatile positions. |
| Ownership | You keep the securities, their dividends, and their upside; the lender takes a security interest for the life of the line. |
| Use of proceeds | Typically non-purpose — any use except buying or carrying securities; a purpose loan buys securities and is margin-regulated. |
| Pricing | A reference rate (such as SOFR) plus a spread, often tiered by loan size. No published rate card. |
| Repayment | Revolving and flexible; interest-only is common, with principal repaid on the borrower’s timing. |
| Main risk | A fall in the collateral can trigger a maintenance call or a forced liquidation of the pledged securities. |
A general description of the instrument, indicative and illustrative only — not a quote, an offer, or advice. See the disclosures.
Draw, hold, repay.
- iPledge. Eligible securities in the investment account are pledged to the lender as collateral. The securities stay in the account; the borrower keeps beneficial ownership, dividends, and the upside.
- iiAdvance rate. The lender sets an advance rate — the loan-to-value against the eligible assets. Broadly held, liquid, low-volatility portfolios support a higher rate; concentrated, restricted, or volatile single-stock positions support a lower one, or fall outside a standard programme entirely. To see the indicative territory for the institutional structures on this site, try the SBLOC / LTV calculator — illustrative only, not a quote.
- iiiDraw. The line is revolving: the borrower draws what is needed, when it is needed, up to the available credit. Undrawn capacity typically costs nothing.
- ivPricing. Interest accrues on the drawn balance at a reference rate (such as SOFR) plus a spread, commonly tiered by the size of the line. There is no published rate card here; pricing on the bespoke structures is set per position.
- vMaintenance. If the collateral value falls so that the drawn balance breaches a maintenance threshold, the lender can issue a call for more collateral or partial repayment; an unmet call can lead to a forced sale of the pledged securities. This is the core risk of any securities-backed borrowing.
- viRepay. Repayment is flexible — interest-only is common, and principal is repaid on the borrower’s own timing. On repayment the security interest is released and the securities are unencumbered.
Where a standard SBLOC programme will not take the position — a concentrated single stock, restricted or lock-up shares, a controlling stake, or a cross-border listing — the same economics are available in bespoke form as an institutional securities-backed loan, with a negotiated loan-to-value, tenor, recourse profile, and custody. That is the territory this firm structures; the securities-backed lending explainer sets it out in full.
Everything on a securities-backed line of credit.
SBLOC Minimum Requirements
Portfolio size, eligible assets, and the account thresholds that decide whether a portfolio qualifies.
Purpose vs Non-Purpose
What you can and cannot do with the cash, and how the margin rules (Reg U / Reg T) draw the line.
SBLOC vs Margin Loan
Two ways to borrow against securities. Which one, when, and why the difference is more than the rate.
SBLOC vs HELOC
Borrowing against a portfolio versus against home equity — the trade-offs, side by side.
Using an SBLOC to Buy a House
Bridging a purchase or a closing against your portfolio — how it is used, and the risks to weigh.
How SBLOC Providers Differ
What actually varies between providers — rate basis, minimums, call terms, flexibility, and custody.
For the institutional and cross-border structures — concentrated, restricted, or controlling positions a standard programme will not take — start with how securities-backed lending works, how much you can borrow, and the Lombard, stock-loan, and margin-loan comparison.
On the securities-backed line of credit.
Q · 01 What is a securities-backed line of credit (SBLOC)?
Q · 02 How is an SBLOC different from a margin loan?
Q · 03 How much can you borrow with an SBLOC?
Q · 04 What can you use an SBLOC for?
Q · 05 Is an SBLOC risky?
Q · 06 Is an SBLOC the same as securities-backed lending or a Lombard loan?
A position a standard programme won’t take?
Concentrated, restricted, controlling, or cross-border — submit a confidential enquiry. A senior principal will respond.