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RBA Glossary definition for margin loans

margin loans – Loans which are made to investors to purchase financial assets, usually equities or units in managed funds. These assets are used as security for the margin loan. Margin loan clients are required to keep the ratio of borrowings to the value of underlying security below a pre-arranged level. When the ratio goes above this level, lenders will make a margin call, requiring the borrower to either repay some of the loan or provide additional security to support the loan.

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The Role of Collateral in Borrowing

20 Jan 2021 RDP 2021-01
Nicholas Garvin, David W Hughes and José-Luis Peydró
short-maturity term loans). Our analysis groups these loan types together and, within the short-term category, puts little emphasis on maturities, instead focusing on quantity of loans outstanding at any ... lbdm. is zero. We measure outstanding loans in
https://www.rba.gov.au/publications/rdp/2021/2021-01/full.html

Introduction

20 Jan 2021 RDP 2021-01
Nicholas Garvin, David W Hughes and José-Luis Peydró
In the unsecured market, loan volume reactions are negatively related to borrowers' ex ante balance sheet weakness (i.e. ... In the repo market, moreover, there is more activity in the extensive margin (i.e.
https://www.rba.gov.au/publications/rdp/2021/2021-01/introduction.html

Institutional Background and Data

20 Jan 2021 RDP 2021-01
Nicholas Garvin, David W Hughes and José-Luis Peydró
short-maturity term loans). Our analysis groups these loan types together and, within the short-term category, puts little emphasis on maturities, instead focusing on quantity of loans outstanding at any ... lbdm. is zero. We measure outstanding loans in
https://www.rba.gov.au/publications/rdp/2021/2021-01/institutional-background-and-data.html

The Repo and Unsecured Markets' Reactions to Stress

20 Jan 2021 RDP 2021-01
Nicholas Garvin, David W Hughes and José-Luis Peydró
This table contains results from regressing loans outstanding, in log millions plus one ( LoanValues. ... Columns (a) to (l) contain estimates from regressing loans outstanding, in log millions plus one ( LoanValues.
https://www.rba.gov.au/publications/rdp/2021/2021-01/the-repo-and-unsecured-markets-reactions-to-stress.html

Empirical Strategy

20 Jan 2021 RDP 2021-01
Nicholas Garvin, David W Hughes and José-Luis Peydró
lbdm. also took place at the extensive margin, that is, whether borrowers (lenders) changed the number of lenders (borrowers) they dealt with. ... All loan-related and bank-characteristic variables are constructed as described in Section 2.4, but using
https://www.rba.gov.au/publications/rdp/2021/2021-01/empirical-strategy.html