Thursday, February 20, 2014

Newbie's IB Portfolio - Inception

I have just started my Interactive Brokers portfolio (Portfolio Margining). Thought it would be a good idea to show this portfolio from the start and be entirely transparent about it since I can no longer share my new portfolio created in January 2013.

I intend to keep my Interactive Brokers portfolio small and I hope that readers will be able to benefit by having a look at the types of bonds that I hold in my portfolio.

Please note that I intend to buy a number of JUNK bonds (those that can easily become ZERO), so please follow at your discretion.

Below is my initial Account Balance after I transferred in USD150k notional of Leighton bonds. I note that the Market Price of the Leighton bonds is stated as 103.169 when the last price done is 101.5. My interpretation is IB uses the dirty (Market Price+ Accrued Interest) price of bonds for valuation purposes.

From the screenshot, it appears that Leighton bonds have the following characteristics:

Maintenance Margin = 12.5%
Initial Margin = 16%

I had a chat with IB livechat and the key takeaway to avoid a margin call / liquidation scenario is for me to always keep Current Excess Liquidity above 0.

I will continue to track this portfolio and post/share on a monthly basis.

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