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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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Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
1 Sep 2019
RDP
2019-09
Note: (a) Discounted variable rates on owner-occupier housing loans; spread to cash rate. ... Source. Notes. Gross returns (GR. it. ). Mortgages. Discounted variable lending rate on housing loans.
https://www.rba.gov.au/publications/rdp/2019/2019-09/full.html
Introduction
13 Sep 2019
RDP
2019-09
Note: (a) Discounted variable rates on owner-occupier housing loans; spread to cash rate. ... The relative cost of debt funding has not only eroded narrow trading margins, but has made such trades unprofitable over much of the past decade.
https://www.rba.gov.au/publications/rdp/2019/2019-09/introduction.html
Sensitivity Analysis
13 Sep 2019
RDP
2019-09
First, the creditworthiness of the borrower is a proxy for their ability to repay the loan at maturity. ... Second, loan collateralisation reduces the risk exposure to the borrower. If the borrower defaults, the cash lender may recoup most (or all) of
https://www.rba.gov.au/publications/rdp/2019/2019-09/sensitivity-analysis.html