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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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Do Australian Households Borrow to Keep up with the Joneses?

10 Nov 2022 RDP 2022-06
Kim Nguyen
hire purchase loan, car loan and other personal loans) and investment debt (e.g. ... Table B1: Probability of Holding Debt – Extensive Margin. Effects of a 1 standard deviation increase in Gini coefficient.
https://www.rba.gov.au/publications/rdp/2022/2022-06/full.html

Results and Discussion

10 Nov 2022 RDP 2022-06
Kim Nguyen
I examine the extensive margin by estimating the probability of holding debt across different types of debt. ... Results in Table B1 suggest that the extensive margin does not matter and debt accumulation is driven by the intensive margin.
https://www.rba.gov.au/publications/rdp/2022/2022-06/results-and-discussion.html