Margin lending rips, not

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From the SMH:

Banks say more clients are using borrowed money to invest in shares, with margin lending to retail investors growing strongly as the sharemarket edges closer to 6000 points.

After the benchmark ASX 200 last week touched a fresh six-year closing high of 5915.68 points, the country’s two biggest margin lenders, CommSec and BT, have reported a significant rise in the number of margin accounts being opened each week.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.