Typical Securities-Based Lending Rates in 2026 by Provider and Portfolio Size

Securities-based lending (SBL) — also called margin loans, portfolio loans, or pledged asset lines — lets you borrow against your investment portfolio without selling securities. It’s cheaper than most other forms of borrowing because the collateral is highly liquid and continuously valued. This guide breaks down 2026 SBL rates by provider, portfolio size, and collateral mix. For product overview see securities-based lending; for how it works see how SBL works.

SBL Rate Structure: SOFR + Spread

Almost all institutional SBL pricing is structured as SOFR + spread (Secured Overnight Financing Rate), where the spread depends on:

• Provider: Wirehouse banks vs self-directed brokers vs private banks vs banks with pledged-asset lines
• Portfolio size: Larger portfolios get tighter spreads (volume discount)
• Collateral type: Diversified equity portfolio prices below concentrated single-stock or alternative assets
• Draw size: Larger draws within a line price tighter
• Relationship: Existing wealth management or banking relationship gets relationship pricing

SOFR in May 2026 is ~5.40%. Add the typical 1.0–3.5% spread and you get an all-in SBL rate of 6.5–9% APR. Rates float — if SOFR moves, your rate moves at the next reset (monthly or quarterly depending on provider).

Major Brokerage / Wirehouse SBL Rates

Major brokerage SBL pricing in 2026:

• Morgan Stanley Portfolio Loan Account (PLA): SOFR + 1.50–3.50% depending on portfolio size and relationship. $5M+ portfolios with diversified equity collateral get the tightest end. All-in ~7–9%.
• Merrill Lynch Loan Management Account (LMA): SOFR + 1.5–3.25% tiered by balance. Best pricing for $5M+ accounts with BofA banking relationship.
• UBS Premier Credit Line: SOFR + 1.25–3.0%. UBS is competitive on high-net-worth client SBL.
• Wells Fargo Advisors Priority Credit Line: SOFR + 1.5–3.5%. Best pricing for combined Wells Fargo banking + advisory relationships.
• Edward Jones, Raymond James, etc.: SOFR + 2–4% — generally wider spreads than wirehouses.

Self-Directed Broker Margin / SBL Rates

Self-directed brokers offer fast online setup but generally wider spreads on smaller portfolios:

• Charles Schwab Pledged Asset Line (PAL): Spread varies by balance tier. Currently ~SOFR + 2.0–3.5% for smaller balances; tighter for $1M+.
• Fidelity Securities-Based Line of Credit: Similar structure to Schwab, comparable pricing tiers.
• Interactive Brokers margin: Industry-low margin rates. Currently ~SOFR + 0.5% (smallest balances) to SOFR + 1.5% (larger balances). All-in ~5.9–6.9%. IBKR is the price leader on margin but is true margin (not a pledged-asset structure) — different risk profile.
• E*TRADE / Webull / Robinhood: True margin, not SBL. Rates 9–13% on smaller balances, lower at larger tiers.

Note: traditional margin and SBL/PAL are structurally different. Margin auto-liquidates aggressively at maintenance call. PAL/SBL provides more time and flexibility to meet a collateral call — one of the reasons spreads are slightly higher.

Private Bank SBL Rates

Private banks serve high-net-worth and ultra-high-net-worth clients with the tightest spreads:

• JPMorgan Private Bank Securities-Backed Line of Credit: SOFR + 0.75–2.5% for clients with $5M+ relationships. All-in ~6.15–7.9%.
• Bank of America Private Bank Loan Management Account: SOFR + 1.0–2.5% for qualifying clients.
• Goldman Sachs Private Wealth Management: Competitive SBL pricing for $10M+ clients. SOFR + 0.85–2.0%.
• Citi Private Bank: Comparable to JPM / BofA private bank tiers.
• Northern Trust, Bessemer Trust, Pictet: Boutique private bank SBL, competitive for $10M+ clients.

Private bank SBL is the cheapest tier but requires substantial portfolio + banking relationships. If you have $5M+ in assets at one institution, the pricing premium for moving to a private bank is often justified by the rate savings.

Bank Pledged Asset Line Rates

Several large banks offer SBL/PAL even without an advisory relationship:

• Wells Fargo Personal Pledged Asset Loan: Available to retail Wells customers. Spread varies.
• Chase Personal Line of Credit secured by securities: Available to Chase wealth clients.
• Various regional banks: Offer SBL to private banking clients. Worth checking your primary bank.

Bank PAL often prices competitively for deposit-relationship customers and can be funded faster than wirehouse PLA setups.

Rate Tiers by Portfolio Size

Most providers tier pricing by portfolio (or pledged collateral) size:

• Under $250K: SOFR + 3.0–4.0% → ~8.4–9.4%. Limited provider selection. Schwab, Fidelity, IBKR are realistic.
• $250K–$1M: SOFR + 2.5–3.5% → ~7.9–8.9%. Brokerage SBL becomes competitive.
• $1M–$5M: SOFR + 2.0–3.0% → ~7.4–8.4%. Wirehouse and private bank tiers open up.
• $5M–$25M: SOFR + 1.25–2.5% → ~6.65–7.9%. Private bank pricing best.
• $25M+: SOFR + 0.75–1.75% → ~6.15–7.15%. Most aggressive private bank pricing.

The tier impact is significant: a $10M portfolio borrower could be paying 6.9% at private bank vs 8.5% at a self-directed broker for the same draw. See SBL borrowing capacity.

Rate Differences by Collateral Mix

Same provider, different spread depending on what you’re pledging:

• Diversified large-cap US equity (S&P 500 ETF, blue-chip stocks): Tightest spread. Lendable value typically 70–75% LTV.
• International developed equity: Slightly wider spread. 65–70% LTV.
• Investment-grade bonds: Tight spread (cash-like). 80–90% LTV.
• Municipal bonds: Tight spread. 70–85% LTV.
• Concentrated single-stock position (single ticker >25% of portfolio): Wider spread by 50–150 bps. Often haircut LTV to 30–50%.
• Restricted or Rule 144 stock: Significantly wider, sometimes ineligible.
• Mutual funds: Eligible at most providers but lower LTV than ETFs.
• Alternatives (private equity, hedge funds): Generally ineligible at most providers; some private banks lend at deep haircuts.

Diversification matters because the lender is worried about a market drop forcing a margin call. A diversified portfolio can absorb more volatility before triggering a call than a concentrated one. See SBL traps including concentration risk.

What Moves Your SBL Rate

• SOFR: Moves with Fed policy. Fed cut = your SBL rate drops at next reset.
• Spread: Determined by provider, portfolio size, collateral mix, draw size, and relationship.
• Negotiation: Spread is negotiable at private banks for $5M+ clients — ask explicitly. Self-directed brokers are usually take-it-or-leave-it.
• Draw size: Some providers offer tighter spreads on larger individual draws within the line.
• Promotional rates: Watch for intro rates that expire after 6–12 months — rate jumps back to standard after promo period.

SBL vs Other Borrowing Costs

To put SBL pricing in context (May 2026):

• SBL: 6.5–9% APR
• HELOC: Currently ~8.5–10.5%
• Mortgage cash-out refinance: ~7–8.5%
• SBA 7(a) business loan: 9.75–12.25%
• Bank business term loan: 7–14%
• Credit card: 18–28% APR
• Personal loan (unsecured): 9–25%

SBL is among the cheapest forms of borrowing if you have a portfolio to pledge. The trade-off is margin call risk — if markets drop sharply, you may be forced to repay or post additional collateral. See SBL risks.

Get Matched with SBL Providers

The fastest way to find the right SBL provider is to compare offers across brokerage, private bank, and self-directed channels in parallel. Get matched for SBL — one inquiry covering multiple providers. Also see how SBL works, SBL risks, and when to use SBL.