Portfolio CreditLine Borrowing Power
Your borrowing power is limited only by the value of the securities that you own.
|
|
|
| How much can I borrow? |
Borrowing Power |
Initial Requirement for Portfolio CreditLine |
Maintenance Requirement |
|
| Stocks* |
|
|
|
| Price =>$6-5/8 |
50% |
50% |
30% |
| Price =$5 to $6-5/8 |
50% |
50% |
$2/share |
| Price =$2 1/8 to>$5 |
None |
100% |
$2/share |
| Price = $2 or less |
None |
100% |
100% |
|
| US Government Bonds |
|
|
|
| Maturity >1Year |
95% |
5% |
5% |
| Maturity 1-2Years |
94% |
6% |
6% |
| Maturity 3-4Years |
93% |
7% |
7% |
| Maturity 5-9Years |
92% |
8% |
8% |
| Maturity >10Years |
90% |
10% |
10% |
|
| Investment-Grade Corporate Bonds |
|
|
|
| $400 and above |
75% |
25% |
25% |
| $200 to under $399 |
50% |
50% |
10%
of face value |
|
| Municipal Bonds |
|
|
|
| $670 and above |
85% |
15%
of market value |
15%
of market value |
| >$670 |
Varies |
10%
of face value |
10%
of face value |
|
| Mutual Funds |
|
|
|
| > or = to $5/share |
50% |
100%
initial |
30% |
| |
|
* Not all securities are eligible, such as assets in qualified retirement plans, custodial and some trust accounts. Thinly traded or highly volatile stocks and concentrated positions may have higher margin requirements.
Borrowing against securities may not be appropriate for everyone and should be carefully evaluated before being used. If securities decline in value, you may be required to pay down the loan or deposit additional securities as collateral. If you cannot do so, all or a portion of your collateral may be liquidated and the proceeds used to pay down your loan balance. A forced liquidation could also trigger a potential taxable event.
Mutual Funds and new issues must be fully paid for an owned for 30 days or longer before they can be used as collateral.
| Investments held at Smith Barney are not FDIC insured, not bank-guaranteed and may fluctuate in value, including the loss of principal. |
Borrowing power may be lower and minimum requirements may be higher for:
Not all securities are eligible. Restricted, control or registered stock and non-investment grade bonds may be eligible as collateral on an exception basis only. Loanable values and minimum requirements will be determined on a case-by-case basis.
All collateral is subject to review and approval of Smith Barney. For additional information, please contact your Smith Barney Financial Advisor.
Portfolio CreditLine is a registered service mark and Express CreditLine is a service mark of Citigroup Global Markets Inc.
Smith Barney does not give tax or legal advice. Please consult your tax or legal advisor for guidance.
 For more information, please contact your Financial Advisor.
|
Services 
