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Securities offered through White Pacific Securities, Inc., member: FINRA, PCX, MSRB, SIPC
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Frequently Asked Questions
What types of bonds do you offer?
We provide access to a wide selection of fixed income securities, including federal,
municipal and corporate bonds, both U.S. and international.
Your site gives an option to buy bonds. Can I also sell bonds through your company?
If you wish to sell your securities, submit the description of the bonds you need to sell to our
Help Desk,
and we will try to find the best possible bid for you.
What if the bond I am looking for is not on your list?
Our listings represent only a part of the securities we can offer. Please submit your request to our
Help Desk,
and in most cases, we will be able to help you find what you need.
How do I transfer an account from another brokerage firm?
You will need to fill out an additional form (called
ACAT
form) and attach a copy of your latest statement from the other firm.
Everything else will be done automatically.
Can I buy as few as 5 bonds?
Although rare exceptions are possible, our minimum quantity for one trade is 10 bonds. This requirement is essential for providing competitive quotes.
Can I search listed bonds by the company's ticker?
Our search engine recognizes bonds by the name of an issuer, not by ticker.
To search for specific corporate bonds, you need to use the
Advanced Search mode.
Type the name of the company in the "issue" field (the name can be partial),
specify "type" (corporate, treasury or municipal) leaving the other criteria blank,
hit Search button, and you'll get the list of available bonds for the issuer.
If you are looking for the issue that is not on the list, please contact our
Help Desk,
and we will find bond issues of your interest.
What does "accrued interest" mean? Why is it added to the purchase amount when I try to place an order?
Bonds usually pay interest every six months, but the interest is accrued by the bondholders on a day-to-day basis.
If you purchase bonds on the secondary market, you will receive a full amount of interest on the day of
the next interest payment. However, since you didn't own the bonds from the day of the last interest payment, a
part of the next payment belongs to the previous owner. This part is called "accrued interest", and you must
pay the seller market price plus the accrued interest, for which you will be reimbursed when
the issuer pays the coupon.
Accrued interest is calculated on a 30-day month/360-day year for corporate bonds and municipal bonds,
and on actual-calendar-days for Government bonds. When calculating accrued interest on a
bond that is being sold, it is conventional to consider the time period from the most recent payment up to,
but not including, the date on which the bond sale is settled.
How is the market price of bonds quoted?
Bonds are quoted as a percent of Par. The Par value of corporate bonds is usually $1000. Therefore, buying
20 bonds quoted at 98 would mean purchasing securities worth $20,000 at a price of 98% of Par, i.e.
paying the amount of $19,600.
Can I trade bonds on margin?
Yes, if bonds are marginable. Non-marginable are all bonds selling below 50, with an exception of
U.S. Government issues. Initial and maintenance margin requirements for
marginable debt securities are as follows:
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Type of Debt Securities
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Initial Margin Requirement
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Maintenance Margin Requirement
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Convertibles
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50% of market value
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35% of market value
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Corporates and Municipals
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Greater of 20% of face value or 25% of market value
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U.S. Governments
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Greater of 3% of face value or 10% of market value
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Please note that some lower-rated or international issues may be reflected in your account
as having zero value. In such cases, the bonds must be fully paid for and cannot be margined.
Do you provide investment advice?
Generally, we do not give investment advice within terms of this service. We are able, however,
to provide our clients with some additional officially released information on certain bond
issues or companies.
What is YTM? What is the difference between YTM and Current Yield?
YTM stands for Yield To Maturity - the calculated return on investment that an
investor will get by holding the bond to maturity. It takes into account the present value of
all future cash flows, as well as any premium or discount to par that the investor pays.
Current yield is the rate of return an investor will get, without taking into
account the value of the premium or discount of the purchase price.
It is calculated by dividing the coupon by the price.
The current yield is not a good indication of your return on investment.
Yield to maturity takes into account the value of the discount or premium paid
for the bond, and as such it offers a much better indication of the value of the bond.
Can I open an account if I am a resident of a foreign country?
Yes. Go to
Open Account
section and follow the instructions. Based on information provided by you, the system will create
the list of forms required to open your account. You will need to print them out, fill in, sign
and send to us for further processing.
Is there any tax withholding for non US-residents on interest paid on bonds?
A general answer to the question is NO. According to IRS Publication #515 (Withholding of Tax on
Nonresident Aliens and Foreign Corporations), Page 15, "... Portfolio interest. Interest and original issue
discount that qualifies as portfolio interest is not subject to NRA withholding. To qualify as portfolio interest,
the interest ... must be paid on obligations issued after July 18, 1984, and must meet certain other requirements."
And further: "...Obligations in registered form. Portfolio interest includes interest paid on an obligation
that is in registered form, and for which you have received documentation that the beneficial owner of the
obligation is not a United States person."
Simply put, generally there should not be any tax withholding for Nonresident Aliens
(this status is verified by W-8BEN Form, that goes with any foreign account) on interest paid on obligations
issued after July 18,1984 (which most bonds qualify for). However, you should consult with a tax
advisor as to your individual tax situation.
Do you open corporate accounts?
Yes. Please see the instructions in our
Open Account
section.
I would like to see my portfolio invested in bonds and diversified, but I only have $20K to invest at this moment. What are my options?
Besides individual issues, we also have access to thousands of mutual funds. Some of
them specialize strictly in fixed-income products. Please contact our
Help Desk,
if you need more information about such funds.
Do you have access to bonds denominated in currencies other than US$?
Yes. We keep expanding this area of business. Usually bonds denominated in different
currencies are purchased in US dollars and deposited into a US dollar account at U.S. Clearing.
Principal and coupon payments are automatically converted into US dollars using prevailing exchange rates.
I am a Registered Investment Adviser with 30 client accounts under management. Once in a while I need to buy sizeable lots of bonds and then have them allocated among a number of accounts. Will you be able to accommodate my needs?
Absolutely. The easiest way to do that is by conducting a dealer-to-dealer trade between us and the broker-dealer maintaining your clients' accounts. This solution will let you utilize our expert service without the hassle of transferring the client accounts.
How is my account protected?
White Pacific Securities and ADP Clearing & Outsourcing Services, Inc. ("ADP Clearing") are members
of the Securities Investor Protection Corporation ("SIPC"). ADP Clearing, member SIPC, provides
account protection for the net equity of a customer's securities positions. The Securities Investor
Protection Corporation ("SIPC") provides $500,000 of net equity protection, including $100,000
for claims for cash awaiting reinvestment ("SIPC coverage").
Visit www.sipc.org for more information about SIPC coverage.
ADP Clearing provides additional protection ("Excess SIPC") through Customer Asset Protection
Company, a licensed New York insurer. Account protection applies when a SIPC member firm
fails financially and is unable to meet obligations to securities clients, but it does not
protect against losses from the rise and fall in the market value of investments, and does not
cover all assets.
Do you offer check writing privilege?
Yes, for margin accounts with equity above $10K, check writing privilege is available at no additional cost. First supply of 150 checks is also free.
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