Liquidity without a tax event.
A line of credit against the portfolio can fund a purchase, a tax bill, or a business move without forcing a sale. It is not a fit for borrowing that stretches the balance sheet or funds ongoing spending.
What securities-based lending is
A securities-based line of credit lets you borrow against an existing investment portfolio rather than selling positions to raise cash — funding a purchase, a tax bill, or a business move without triggering the tax consequences of a sale.
Sizing is the discipline
A line used briefly against a diversified portfolio behaves very differently from one drawn deep against a concentrated position, where a market decline can force the exact sale the line existed to avoid. We set the guardrails — maximum draw, payoff plan, what triggers a review — before the first dollar is borrowed.
What’s included.
- A pledged-asset line set up against your holdings
- A margin rate negotiated on your behalf
- A drawdown and repayment plan you agree to upfront
- Ongoing visibility into collateral and call risk
- Borrowing coordinated with your portfolio's tax lots
How it works.
Review the portfolio
You learn how concentrated or liquid your holdings are before any line size is recommended.
Set the guardrails
You agree on a maximum draw, a payoff plan, and what triggers a review before a dollar is borrowed.
Monitor collateral
You get ongoing visibility into call risk as markets move, not just at the time you borrowed.
Answers from the practice.
What is securities-based lending?
Borrowing against an investment portfolio's value rather than selling assets — the portfolio serves as collateral for a line of credit, avoiding a taxable sale to raise cash.
What is collateral call risk?
The risk that a market decline reduces a pledged portfolio's value enough to require additional collateral or a forced sale. That risk rises with how concentrated the pledged portfolio is, which is why we review concentration before sizing a line.
Is securities-based lending right for my situation?
It fits investors with a meaningful portfolio who need liquidity — for a purchase, a tax bill, or a business move — without wanting to force a sale. It is not a fit for borrowing that stretches the balance sheet or funds ongoing spending. A first conversation is how we find out — observations are shared, decisions stay yours.
What happens after I reach out about securities-based lending?
We start with a conversation about what the borrowing is for and how it fits your broader plan. We review the portfolio, existing debts, and the demands on your cash flow, and tell you whether and how the practice can help — including when the answer is that borrowing isn't the right tool.
Coordinate with the rest of the firm.
Mortgage Strategy
Mortgage structure ripples through the tax return, cash-flow plan, and balance sheet — we model it before you shop it.
LendingBusiness Credit
The business and household balance sheet are one system for an owner — we structure borrowing to protect both.
Wealth ManagementWealth Management
Comprehensive financial planning, disciplined investment management, and retirement income coordination.
Talk through securities-based lending.
An introductory conversation is the easiest way to learn whether 755 Financial is the right fit.
Schedule a Conversation