Macquarie boosts access to margin loans

margin-lending/margin-loans/macquarie/cent/

31 October 2002
| By Ben Abbott |

MacquarieMargin Lending has moved to make its margin lending facility more accessible to investors by increasing its available funding and its number of approved shares.

The Macquarie Margin Loan will now provide up to 75 per cent of funding for people looking to borrow to invest, up from a 70 per cent previously.

It has also increased its list of approved securities to more than 800, up from 300 in August, and over 500 approved managed funds, an increase of 140 over the same period.

The higher loan-to-value-ratio (LVR) of 75 per cent will apply to popular stocks such as Telstra and the major banks.

A higher LVR of up to 65 per cent will now also apply on small company funds.

“The new LVRs make margin lending more available to investors, giving them the opportunity to take advantage of share prices while they are still considered to be undervalued,” Macquarie head of margin lending Scott Young says.

Young says the improved LVR’s give investors the potential to unlock further value from their existing managed funds holdings.

“New investors to margin lending are moving away from the traditional margin loan in direct equities towards borrowing to invest in managed funds,” he says.

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