Written by Chris Bendtsen
How High-Net-Worth Investors Borrow Against Their Portfolios
How High-Net-Worth Investors Borrow Against Their Portfolios
Securities-backed lines edge out margin loans and HELOCs among high-net-worth borrowers. Median lines run from $160K at Schwab to $1.1M at J.P. Morgan.
Chris Bendtsen
Research Findings
Portfolio-backed credit lines are the default borrowing tool for high-net-worth investors. A securities-backed line of credit lets a borrower pledge a taxable portfolio as collateral without selling it. Among respondents to Long Angle's 2026 High-Net-Worth Financial Products Study who had borrowed, 37% used one, against 35% for a margin loan and 32% for a home equity line; respondents could report more than one. Median line sizes ranged from $160,000 at Schwab to $1.1 million at J.P. Morgan on a smaller base. Based on 165 voluntary US respondents, July 2026.
Key Takeaways
- Securities-backed lines lead at 37% of borrowers, ahead of margin loans at 35% and home equity lines at 32%.
- Borrowing is general-purpose: home purchase at 29% and other large purchases at 28% lead portfolio leverage at 26%.
- 20% borrowed to fund tax payments and 15% to meet capital calls, both dated obligations.
- Median loan size rises from $50,000 at $2-5 million net worth to $600,000 above $25 million.
- Multiple response, and shares are of borrowers only. J.P. Morgan and Frec figures rest on low respondent counts.
2026 High-Net-Worth Financial Products Report
See which banks, credit cards, brokerages, lenders and insurers high-net-worth households actually use and which they recommend. Based on insights from 165 investors, entrepreneurs and executives.
Three instruments, heavily overlapping
Among respondents who have taken a loan or line of credit, 37% used a pledged asset line, portfolio line of credit or securities-backed line of credit, 35% a margin loan and 32% a home equity line. Personal loans reach 12% and box spreads 3%.
Respondents could report more than one, so these shares do not sum to 100% and the instruments are not alternatives so much as a set most borrowers draw from.
| Instrument | Share of borrowers |
|---|---|
| Pledged asset line, portfolio line of credit or SBLOC | 37% |
| Margin loan | 35% |
| Home equity line of credit | 32% |
| Personal loan | 12% |
| Other | 9% |
| Box spreads | 3% |
Source: Long Angle 2026 High-Net-Worth Financial Products Report, 165 respondents, 81% with net worth over $5M, fielded July 2026. US respondents only. Shares are of respondents who have taken a loan or line of credit. Multiple response, so shares do not total 100%.
The money is for ordinary things
The purpose data contradicts the framing these products usually get.
Home purchase leads at 29% and other large purchases at 28%. Portfolio leverage sits third at 26%. Business opportunities and home renovation tie at 23%, tax payments reach 20% and capital calls 15%.
| Purpose | Share of borrowers |
|---|---|
| Home purchase | 29% |
| Other large purchase | 28% |
| Portfolio leverage | 26% |
| Business opportunities | 23% |
| Home renovation | 23% |
| Tax payments | 20% |
| Capital calls | 15% |
Source: Long Angle 2026 High-Net-Worth Financial Products Report, 165 respondents, 81% with net worth over $5M, fielded July 2026. US respondents only. Shares are of respondents who have borrowed. Multiple response, so shares do not total 100%.
Respondents describe drawing on a line for short-term cash and repaying it once other liquidity arrives, such as a stock sale. Tax payments at 20% and capital calls at 15% fit that pattern: both are dated obligations that arrive before the liquidity to meet them.
Loan size tracks collateral, and lender choice more than that
Median loan size rises with wealth, as available collateral does: $50,000 at $2-5 million net worth, $300,000 at $5-10 million, $350,000 at $10-25 million and $600,000 above $25 million.
Lender medians separate much further. J.P. Morgan's median line runs $1.1 million against $650,000 at Fidelity, $250,000 across other lenders, $160,000 at Schwab and $50,000 at Frec.
| Lender | Share of borrowers | % Recommend | Median loan size |
|---|---|---|---|
| Schwab | 17% | 91% | $160,000 |
| Fidelity | 11% | 86% | $650,000 |
| J.P. Morgan / Private Bank* | 6% | 100% | $1,100,000 |
| Frec* | 6% | 100% | $50,000 |
| Other | 66% | 66% | $250,000 |
Source: Long Angle 2026 High-Net-Worth Financial Products Report, 165 respondents, 81% with net worth over $5M, fielded July 2026. US respondents only. Rows marked with an asterisk sit on a low respondent count.
Frec is a Long Angle partner, and Long Angle receives referral fees from some partners. Its figures here rest on a low respondent count.
Two thirds of borrowers used a lender outside the named four, and that group recommends at 66% against 86% or better for the top three.
Rates are worth checking rather than assuming. Respondents at both Schwab and Fidelity described their rates as noncompetitive, and one borrower's advice was simply to shop lenders.
Rate quotes on these lines vary more than anyone expects.
Long Angle is a vetted community of high-net-worth founders, executives and investors who compare pledged asset line terms, spreads and lender behaviour before they draw, with their real names attached.
The instrument matters less than the terms. Respondents at the same firms reported both strong recommendations and noncompetitive rates, and one borrower's advice was simply to shop lenders. Before drawing on a line, the comparison worth making is spread over benchmark, call provisions and what happens in a drawdown, rather than the product name.
Frequently Asked Questions
What is a securities-backed line of credit?
A line of credit secured against a taxable investment portfolio, letting the borrower access cash without selling holdings. 37% of high-net-worth borrowers in this study used one, the most common instrument measured.
Do wealthy investors borrow instead of selling stock?
Frequently, though usually for ordinary purposes. Home purchase at 29% and other large purchases at 28% were the most common uses among respondents who borrowed, ahead of portfolio leverage at 26%.
How much do high-net-worth investors borrow against their portfolios?
Median loan sizes ran $300,000 for respondents worth $5-10 million and $600,000 for those above $25 million. By lender, medians ranged from $160,000 at Schwab to $1.1 million at J.P. Morgan on a smaller base.
Which lenders do high-net-worth borrowers recommend?
Schwab, used by 17% of borrowers with a 91% recommend rate, and Fidelity at 11% and 86%, lead among widely-used lenders. Two thirds of borrowers used a lender outside the named four, and that group recommends at 66%.
Research
