Securities-based Loans
Portfolio CreditLineLending Services
Securities-based Loans ♦ Risks
Borrowing against your securities. The risks and how to manage them.
Your Portfolio CreditLinesm or Express CreditLine® loans are demand loans secured by your marketable securities. If the collateral declines below a minimum level, you may be required to deposit additional cash or securities; otherwise, all or a proportion of your securities may be sold and the proceeds will be used to pay off the loan. If this occurs you may also incur capital gains on appreciated securities.
- Borrow against a diversified portfolio rather than a single stock
- Borrow against relatively stable securities
- Borrow in moderation
When used wisely, borrowing can be beneficial to your total wealth management.
Investments held at Smith Barney are not FDIC insured, not bank guaranteed and may fluctuate in value including loss of principal.
Express CreditLine is a service mark of Citigroup Global Markets Inc. Portfolio CreditLine is a registered service mark of Citigroup Global Markets, Inc. Borrowing against securities may not be suitable for everyone. If the securities used as collateral decline in market value below maintenance levels, the client may be required to pay down the loan or deposit additional securities as collateral. If the client cannot do so, all or a portion of the collateral may be liquidated and a potentially taxable event may occur. A payment default may result in the loss of the pledged securities.
For more information, please contact your Financial Advisor.