Just wondering how many here have margin loans...and what LVRs and gearing ratios you feel comfortable with currently.
Apparently margin loans were taken up strongly in 2003-2004, but take up this year has dropped.
I wonder what the effect will be of so many ASX shares being held on margin loans. If there is a significant pull back, some of those who are on more aggressive LVRs and gearing ratios will try to avoid margin calls by dumping stock. This will drive prices down more quickly, and generate margin calls.
Apparently margin loans were taken up strongly in 2003-2004, but take up this year has dropped.
I wonder what the effect will be of so many ASX shares being held on margin loans. If there is a significant pull back, some of those who are on more aggressive LVRs and gearing ratios will try to avoid margin calls by dumping stock. This will drive prices down more quickly, and generate margin calls.