When a muni that has no underlying rating becomes NR (Not Rated) because its insurer's rating has dropped below investment grade (Radian, in this case), does it also lose its margin power in the brokerage portfolio (Fidelity, in this case)? So far, I haven't noticed any changes in my case at Fidelity.
Not in general... most retail brokerage accounts will provide margin against any liquid securities. As long as the brokerage trades them they will consider them liquid
AugustFour
Senior Member - 1K
posted: Nov. 28, 2009 @ 7:50a
ma91pmh said: Not in general... most retail brokerage accounts will provide margin against any liquid securities. As long as the brokerage trades them they will consider them liquid I know Etrade does not allow margin for securities rated below investment grade even though they could be liquid and trade.
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