{"id":6857,"date":"2019-03-06T07:00:39","date_gmt":"2019-03-06T13:00:39","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6857"},"modified":"2019-03-06T07:00:39","modified_gmt":"2019-03-06T13:00:39","slug":"securities-backed-lines-of-credit-are-not-for-every-investor","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/","title":{"rendered":"Securities-Backed Lines of Credit Are Not For Every Investor"},"content":{"rendered":"<p>\t\t\t\tIn an <a href=\"http:\/\/www.finra.org\/investors\/alerts\/securities-backed-lines-credit\" target=\"_blank\" rel=\"noopener noreferrer\">Investor Alert<\/a>, the <a href=\"http:\/\/www.finra.org\" target=\"_blank\" rel=\"noopener noreferrer\">Financial Industry Regulatory Authority<\/a> and the US Securities and Exchange Commission\u2019s <a href=\"https:\/\/www.sec.gov\/page\/oieasectionlanding\" target=\"_blank\" rel=\"noopener noreferrer\">Office of Investor Education and Advocacy (OIEA)<\/a> sought to inform investors about the risks involved in <a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/investments\/\" target=\"_blank\" rel=\"noopener noreferrer\">securities-backed lines of credit (SBLOCs)<\/a>. These loans are usually touted as a hassle-free, low-cost way for investors to gain access to money by borrowing against their investment portfolio&#8217;s assets without needing to liquidate the investments. Popular among a growing number of securities firms, SBLOCs, however, are not a good match for every investor.<\/p>\n<h2><strong>Securities-Backed Lines of Credit &#8211; SBLOCs<\/strong><\/h2>\n<p>Typically, to qualify for an SBLOC, an investor must have assets with a \u201cmarket value of at least $100K.\u201d He or she can then usually borrow anywhere from 50-95% of the value of assets in the portfolio.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/\"  title=\"Continue Reading Securities-Backed Lines of Credit Are Not For Every Investor\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In an Investor Alert, the Financial Industry Regulatory Authority and the US Securities and Exchange Commission\u2019s Office of Investor Education and Advocacy (OIEA) sought to inform investors about the risks involved in securities-backed lines of credit (SBLOCs). These loans are usually touted as a hassle-free, low-cost way for investors to gain access to money by [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6762,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3783,3762,3738],"tags":[3314,3315],"class_list":["post-6857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broker-fraud","category-broker-misconduct","category-current-investigations","category-investor-fraud","tag-sbloc","tag-securities-backed-lines-of-credit"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities-Backed Lines Of Credit Alert &#8212; Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"Popular among a growing number of securities firms, Securities-Backed Lines of Credit (SBLOCs) however, are not a good match for every investor.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities-Backed Lines Of Credit Alert &#8212; 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Investor Lawyers Blog","twitter_description":"Popular among a growing number of securities firms, Securities-Backed Lines of Credit (SBLOCs) however, are not a good match for every investor.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/01\/1.7.19.jpeg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities-Backed Lines of Credit Are Not For Every Investor","datePublished":"2019-03-06T13:00:39+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/"},"wordCount":583,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2019\/01\/1.7.19.jpeg","keywords":["SBLOC","securities-backed lines of credit"],"articleSection":["Broker Fraud","Broker Misconduct","Current Investigations","Investor Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-backed-lines-of-credit-are-not-for-every-investor\/","name":"Securities-Backed Lines Of Credit Alert &#8212; 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