Product-Specific Margin Requirements

What this video covers

• Why equity securities and convertible bonds carry 50% Reg T initial margin, while exempt securities and straight corporate bonds use good-faith margin instead
• The exact FINRA maintenance schedule for U.S. Treasuries by maturity: 1% under 1 year, 2% at 1-3 years, 3% at 3-5 years, 4% at 5-10 years, 5% at 10-20 years, and 6% at 20+ years
• Why longer-maturity Treasuries require higher maintenance margin due to greater duration and interest rate risk
• The flat 7% of current market value FINRA maintenance requirement for municipal bonds and other exempt securities outside the Treasury schedule
• How straight corporate bonds use good-faith initial margin and maintenance of the greater of 20% of market value or 7% of face value, dropping to 10% of market value for investment-grade issues
• Why convertible corporate bonds flip to standard 50% Reg T initial margin because they are treated as margin equity securities
• The 30-day fully-paid rule for mutual funds and the money market fund exception that uses good-faith margin like other exempt securities