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by taxman22 608 days ago
Schwab Pledge Asset Line (PAL) is SOFR + (2.40% to 4.4%). SOFR today is 4.81%.
2 comments
TMWNN 608 days ago
Is Schwab known for being unusually low with its rate for this product? Vanguard is 11-13%, consistent with what mixmastamyk said. <https://investor.vanguard.com/client-benefits/margin?msockid...>

In any case, my Amex line of credit charges 6%, and I am preapproved for an Amex personal loan for 8.98%. I presume others on HN can get comparable or better.

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JumpCrisscross 608 days ago
> Is Schwab known for being unusually low with its rate for this product?

The Schwab rate sounds high. Fidelity, for instance, charges SOFR + 190 to 310bps [1]. I haven't had an SBLOC for a few years, but I remember Stifel charging no more than 200 bps over Libor.

[1] https://www.fidelity.com/lending/securities-backed-line-of-c...

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mixmastamyk 608 days ago
8ish percent is good but not fantastic, after years of mortgages lower than that.
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