Securities-based Loans
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- Express CreditLine Borrowing Power
Lending Services
Securities-based Loans: Express CreditLine ♦ Borrowing Power
Borrowing Power and Collateral Requirements
The maximum amount you can borrow will be based on the value of your eligible securities. Each security is assigned a "Loanable Value" as outlined in the table below. Aggregate Loanable Value will be calculated daily based on the market value of each security. Loanable values may be lower, and minimum requirements may be higher. This may be subject to change at any time without notice.
| Minimum Collateral-to-Loan Requirement | |||||
| Security Type | Loanable Value >: | Initial | Maintenance | ||
| Equities: (> or = to $10 / share) | 65% | 154% | 143% | ||
| Mutual Funds: (> or = $5 / share) | 65% | 154% | 143% | ||
| UITs: | 65% | 154% | 143% | ||
| Convertible Bonds: > $25 | 65% | 154% | 143% | ||
| CD's (purchased and held at SSB): | |||||
|
|
85% | 118% | 112% | ||
| 70% | 143% | 134% | |||
| 65% | 154% | 143% | |||
| Initial & Maintenance | |||||
| Municipal Bonds: | 85% | 118% | |||
| Corporate Bonds: | 75% | 134% | |||
| Governments: | |||||
| 95% | 106% | ||||
| 94% | 107% | ||||
| 93% | 108% | ||||
| 92% | 109% | ||||
| 10 or more years | 90% | 112% | |||
Mutual Funds, Unit Investment Trusts and New Issues must be fully paid for and owned for 30 days or longer before they can be used as collateral.
Loanable Values may be lower and Minimum Requirements may be higher for:
- concentrated positions
- accounts holding illiquid or volatile positions
- deeply discounted bonds
When used wisely, borrowing can be beneficial to your total wealth management.
Investments held at Smith Barney are not FDIC insured, not bank guaranteed and may fluctuate in value including loss of principal.
Express CreditLine is a service mark of Citigroup Global Markets Inc. Portfolio CreditLine is a registered service mark of Citigroup Global Markets, Inc. Borrowing against securities may not be suitable for everyone. If the securities used as collateral decline in market value below maintenance levels, the client may be required to pay down the loan or deposit additional securities as collateral. If the client cannot do so, all or a portion of the collateral may be liquidated and a potentially taxable event may occur. A payment default may result in the loss of the pledged securities.
For more information, please contact your Financial Advisor.