Other Non-Equity Securities
For long or short positions in investment grade debt securities, the margin to be maintained is 10% of their current market value. For non-investment grade debt securities the maintenance margin must be 20% of their current market value or 7% of the principal amount, whichever is greater.
Maintenance Margin Requirement for Selected Securities |
||
Type of Security |
Maintenance Requirement |
|
Long |
Short |
|
Equity securities |
25% |
30% |
Convertible bonds |
25% |
30% |
Investment grade corporate bonds |
10% of market value |
10% of market value |
Non-investment grade debt securities |
Greater of 20% of market value or 7% of face value |
Greater of 20% of market value or 7% of face value |
Treasury bonds |
1–6 % of market value, depending on years to maturity |
1–6 % of market value, depending on years to maturity |
Municipal bonds |
7% of current market value |