The Lombard loan's core tax advantage is not the low interest rate. It is that borrowed cash is not a taxable event in any major jurisdiction, so you can access portfolio value indefinitely while the original positions continue to compound and your cost basis stays frozen for heirs.
Julius Baer (Switzerland)
Julius Baer in Zurich offers Lombard facilities from CHF 500,000 with advance rates of 70-90% on blue-chip equities and investment-grade bonds, and typical all-in rates of SARON plus 0.5-1.2% depending on collateral quality. Switzerland's legal framework gives you maximum creditor privacy, no withholding on loan proceeds, and a relationship manager who can structure multi-currency facilities across different collateral pools. This is the benchmark for discretionary wealth management clients who want a private bank running both the portfolio and the credit line under one roof.
Interactive Brokers (Global, Retail-Accessible)
Interactive Brokers runs the cheapest margin-style Lombard product available without a private bank relationship, with rates as low as 5.83% for USD borrowing above $1 million as of 2024. You can borrow against equities, ETFs, bonds, and options positions through a single IBKR account, with no setup fee and same-day drawdown. The trade-off is that IBKR uses portfolio margin rules rather than a bespoke credit assessment, so concentrated single-stock positions get haircuts that a private bank would negotiate around. For diversified portfolios under $5 million, IBKR is the most cost-efficient entry point into securities-backed lending. See how this compares to a true Lombard structure before you decide.
Lombard Odier (Switzerland / Singapore)
Lombard Odier runs dedicated securities lending desks in Geneva and Singapore, covering clients who want either Swiss or Asian-booking flexibility on the same collateral pool. Singapore-booked facilities benefit from MAS-regulated privacy, zero capital gains tax, and easy access to Asian equity and bond collateral that Swiss booking agents often haircut more aggressively. Advance rates on Singapore-listed securities and Asian investment-grade bonds reach 70-85%, and the bank's Singapore entity is well-suited for clients building a broader Southeast Asia residency and banking structure.
Pictet (Geneva, Cayman, Singapore)
Pictet is the strongest option for clients whose collateral is held in alternative assets, including hedge fund shares, private equity fund interests, and structured notes, asset classes that most Lombard providers refuse or massively haircut. Advance rates on alternatives sit at 40-60%, lower than liquid securities, but the ability to borrow against an illiquid PE portfolio without a secondary market sale is a structural advantage no retail platform can match. Facilities start around EUR 1 million and Pictet will co-structure the pledge agreement with your counsel across multiple booking centers.
Bank of Singapore (BOS)
Bank of Singapore, the private banking arm of OCBC, books Lombard facilities for clients across the Asia-Pacific region with particular strength in Indonesian, Indian, and Hong Kong equity collateral. Rates are competitive at around SOFR or HIBOR plus 1-1.5%, and BOS has well-established processes for pledging share certificates in jurisdictions where paper-based registry systems complicate custody. Singapore as a booking center adds the benefit of no estate duty, no capital gains tax, and MAS oversight, making this a practical choice for clients accumulating wealth from regional operating businesses.
Goldman Sachs Private Wealth Management
Goldman's PWM division offers bespoke Lombard and securities-backed lending for clients with $10 million or more in investable assets, with the key advantage being that Goldman can lend against positions it also manages, including concentrated single-stock holdings and pre-IPO shares. This is the structure used by founders who need liquidity from a large undiversified block without triggering a taxable sale event, and Goldman's legal team has experience structuring the pledge around lock-up agreements and SEC Rule 144 restrictions. The cost is higher than a plain vanilla facility, typically SOFR plus 1.5-2.5% with origination fees, but the collateral flexibility justifies it for concentrated-stock situations.
Things people ask first.
What is the minimum portfolio size to get a Lombard loan?
Retail platforms like Interactive Brokers have no hard minimum. Traditional private banks typically require at least CHF 500,000 to EUR 1 million in pledged assets, with relationship minimums often higher. Goldman and Pictet typically want $5-10 million in AUM before structuring a bespoke facility.
What is a typical Lombard loan interest rate in 2024?
Rates range from roughly SARON or SOFR plus 0.5% at the premium end (Julius Baer, Pictet for top clients) to SOFR plus 2.5% for more complex or concentrated-collateral facilities at Goldman or boutique lenders. Interactive Brokers sits in the middle at around 5.5-6% all-in for USD borrowing.
Can I use a Lombard loan to buy more assets without selling?
Yes, and this is the core of the buy-borrow-die strategy. You pledge existing holdings, draw cash, deploy it into additional assets, then pledge those assets to expand the facility over time. The original positions never sell, the gains never crystallize, and the loan balance passes to heirs alongside a stepped-up cost basis in jurisdictions that allow it.
What happens if my collateral falls in value and triggers a margin call?
The bank will issue a margin call requiring you to either top up the collateral, deposit additional cash, or repay part of the loan within a defined cure period, typically 2-5 business days. Private banks generally offer more flexibility here than retail platforms, sometimes granting extensions rather than force-selling positions.
Is Lombard loan interest tax-deductible?
In many jurisdictions, including the US and UK, interest on a securities-backed loan used for investment purposes is deductible against investment income. The rules differ by country and by how the loan proceeds are deployed, so the deduction is not automatic and needs to be structured correctly from the outset.
Which jurisdiction is best for booking a Lombard loan?
Switzerland and Singapore are the two strongest booking centers for privacy, regulatory stability, and collateral flexibility. Switzerland is better for European and Middle Eastern clients with diversified portfolios. Singapore is better for Asian equity or bond collateral and clients building a regional residency structure.
Ready to build the full borrow-without-selling structure?
The Offshore Playbook walks through how to combine a Switzerland or Singapore-booked Lombard facility with the correct holding structure, trust layer, and residency position so the loan proceeds are clean, the collateral is protected, and the step-up basis play works at death.
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