What are the margin requirements for Fixed Income Products?
Fixed Income
- Moody's Rating: Baa3 or better
- S&P Rating: BBB- or better
- Fitch Rating: BBB- or better
Corporate Convertible Bonds
- Initial requirement: 50% of the market value
- Maintenance requirement: 30% of the market value
Corporate Bonds
- Initial requirement: (Greater of) 30% of the market value or 7% of the face value
- Maintenance requirement: (Greater of) 25% of the market value or 7% of the face value
Municipal Bonds
- Initial requirement: (Greater of) 20% of the market value or 7% of the face value
- Maintenance requirement: (Greater of) 20% of the market value or 7% of the face value
United States Treasury Securities
Maintenance requirements for Coupon and Zero-Coupon Bonds are as follows:
Less than 5 years to maturity
- Coupon: 5% of market value
- Zero-Coupon Bonds: 5% of market value
5 - 20 years to maturity
- Coupon: 5% of market value
- Zero-Coupon Bonds: Greater of 5% of market value or 3% of par
Greater than 20 years to maturity
- Coupon: 10% of market value
- Zero-Coupon Bonds: Greater of 10% of market value or 3% of par
Fixed-income investments are subject to various risks including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. For further details, please call 800-934-4445.
Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. Please see our website or contact TD Ameritrade at 800-669-3900 for copies.