ANZ Margin Lending has upped the ante in the margin lending market, announcing it will increase gearing on selected stocks to 80 per cent.
The move follows a review of approved shares and managed funds by the head of ANZ Margin Lending, David Manchee, and will apply to the top seven stocks on the list.
Investors will now be able to gear up to 80 per cent on Telstra, AMP and BHP stocks as well as the stocks of the major banks (ANZ, NAB, the Commonwealth Bank and Westpac). Previously, these sto
ANZ Margin Lending has upped the ante in the margin lending market, announcing it will increase gearing on selected stocks to 80 per cent.
The move follows a review of approved shares and managed funds by the head of ANZ Margin Lending, David Manchee, and will apply to the top seven stocks on the list.
Investors will now be able to gear up to 80 per cent on Telstra, AMP and BHP stocks as well as the stocks of the major banks (ANZ, NAB, the Commonwealth Bank and Westpac). Previously, these stocks could only be geared up to 70 per cent.
Sarah Frearson, marketing manager for ANZ Margin Lending, says the decision to increase the maximum gearing ratio was made to give in-vestors more flexibility in deciding their level of exposure to the stocks in fluctuating markets.
She says the change will appeal to the investor-savvy client ANZ Mar-gin Lending is targeting for its services.
“It will suit the people we are trying to reach in the market, those who are more comfortable with risk for greater returns,” she says.
The move also comes amid some industry speculation that the margin lending market is overheated, with some suggesting rationalisation could take place in the near future.
* Margin lending special report, page 23
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