Series 28: Other Non-Equity Securities

Taken from our Series 28 Online Guide

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.

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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
(on net long)

1–6 % of market value, depending on years to maturity
(on net short)

Municipal bonds

7% of current market value