MassMutual Wealth Management has introduced a securities-backed credit line for clients of its affiliated advisors, the second banking-style product the insurer has rolled out to its field force in as many weeks. The offering, announced Thursday, lets clients pledge eligible taxable investment holdings in their MML Investors Services LLC brokerage accounts as collateral for a line of credit, rather than liquidating positions to raise cash.
The launch follows a Flourish Cash rollout last week, when the cash management platform owned by MassMutual since 2021 said it would make its high-yield cash account available to the insurer's network of more than 6,000 financial professionals. Together, the two initiatives give MassMutual advisors a place to park client cash and a way to extend credit against client assets—a combination that wirehouses have long used to deepen relationships with affluent households.
How the credit line works
Under the partnership, Supernova Lending LLC, a state-licensed non-bank lender, will originate, approve, and service every loan. MML Investors Services, which operates as MassMutual Wealth Management, acts as a referral partner and receives compensation for its role in taking applications and facilitating originations, but it makes no underwriting or credit decisions.
Clients can pledge stocks, ETFs, mutual funds, Treasuries, other bonds, and cash equivalents held in MMLIS brokerage accounts, though retirement accounts are excluded. The size of the credit line will vary based on the value, type, and concentration of the pledged securities. MassMutual says it charges no application, maintenance, or closing fees, and interest accrues only on the amount drawn. The firm suggests the line could be used for real estate purchases, bridge financing, tax payments, business expansion, and wealth-transfer planning.
The product is not available in Mississippi, Nevada, North Dakota, or Puerto Rico. MassMutual did not disclose specific interest rates, saying only that they compare favorably with many traditional borrowing options.
Strategic push into banking services
“We built Secured Credit Line in partnership with Supernova so when a client need or an opportunity arises, the financial professional can remain at the center of the conversation,” said Linda Bestepe, MassMutual's head of lending and banking services. “It is a capability our financial professionals value, our clients appreciate, and our industry should expect.”
Vaughn Bowman, head of wealth management at MassMutual, added: “Having access to credit – and tapping it thoughtfully and intentionally – is becoming an important component when building wealth. This new offering demonstrates our continued commitment to helping people grow, protect, and pass on their wealth thoughtfully.”
The credit line launch comes as MassMutual deepens its push into private-bank-style services. Last week, Flourish announced an enterprise relationship that lets MassMutual-affiliated advisors offer Flourish Cash to clients. The account pays a rate currently nine times the national average for savings accounts and spreads deposits across program banks to provide up to $40 million of FDIC coverage for a two-person household.
MassMutual's history with Flourish dates to December 2020, when it agreed to acquire the cash management platform from Stone Ridge Holdings Group. At the time, Flourish served more than 350 RIAs with over $600 billion in combined assets. Since then, Flourish has grown to work with more than 1,300 RIA firms managing over $2.6 trillion, and it holds more than $8 billion in assets under custody. It has also expanded into home lending through its acquisition of the Sora loan-optimization platform.
In September, MassMutual agreed to relinquish control of Flourish to private investment firm Aquiline, which will take a controlling stake. MassMutual will remain a significant minority stakeholder and commercial partner, with the deal expected to close in the fourth quarter. At that point, former Fidelity executive David Canter will become Flourish's executive chairman.
