Securities Backed Line of Credit (Pledged Asset Line)

[Kyle Collette]

Hey BP Community,

Question for you all: Looking to open a Line of Credit (called a Pledged Asset Line by Charles Schwab) against my brokerage investment accounts. Does anyone have any experience with this? I opened a HELOC early last year and was wondering how the process is different.

I spoke with Charles Schwab yesterday and got an overall view, but wanted to check to see if anyone has had any experience (positive or negative) doing this.

The plan is to use the PAL to make "cash" purchases and then immediately refinance (using delayed financing).

Any advice/insight is appreciated!