How margin lending works

Financial journalist and commentator on 3AW and Sky Business
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One of the financial strategies that was scarified by the global financial crisis (GFC) was that of borrowing to buy shares.

According to Reserve Bank of Australia (RBA) statistics, pre-GFC, as of December 2007, there were 248,000 margin lending client accounts in Australia, with $41.5 billion in loans. Fast-forward to March 2017, and despite low interest rates, there are 129,000 margin lending client accounts – a 13-year low – with $11.5 billion in loans.

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