Loan To Value Ratio (LVR)
Loan to value ratios (LVRs) on shares and managed funds sound complicated but they’re not. Just think of this ratio as the amount the lender is willing to cough up. So if the LVR is 70 per cent, then the lender is willing to lend you 70 per cent of the total value of the…
Margin Call
Let’s say that you pledge $30,000 of your own shares and borrow a further $70,000 from a margin lender and invest the entire amount, $100,000, into a portfolio of shares. Your LVR in this example is 70%. If the value of the portfolio falls from $100,000 to $90,000, the LVR of 70% will be exceeded…
The Travails of Larry Williams, Futures Trader
In May 2006 Larry Williams was arrested in Sydney by federal police. Up until recently Williams was confined to the Sydney CBD awaiting possible extradition to the US on tax evasion charges. He can now go anywhere in Australia, so long as he posts his movements to police. Karin Derkley speaks to him from his…
A story of a home-based trader – Vimal Mehta
Commercial pilot Vimal Mehta often has hours to kill in hotel rooms during stopovers between flights. But he deliberately chooses not to spend this time trading. The 36-year old says that while this may seem like the ideal opportunity to work the market he finds that the situation puts too much pressure on him to…
Take a look at what Bob Jane owns
Tyre magnate Bob Jane holds grave fears for the Australian car industry. He believes between 40 and 50 per cent of the nation’s car dealers will close their doors during the next six months after floor plan financiers GE Money and GMAC Finance recently announced they would withdraw from the Australian industry. “Car dealers in…
John Symond reveals his personal investment portfolio
Aussie Home Loans founder John Symond is laughing all the way to the Commonwealth Bank. Symond, who took on the big banks in the cut throat home lending space, recently sold a 33 per cent stake in Aussie to the CBA for what is believed to be about $100 million. The sale leaves a sweet…
How Australia’s wealthiest investors are navigating the financial crisis
High net worth individuals are cashed up, debt free and waiting for opportunities. But they are in no hurry to rush back into buying equities, say advisers to people with millions to invest. Paul Huggins, director of RetireInvest, Melbourne has clients telling him it is a good time to go on holiday and not look…
10 Aussie stocks with the highest debt
What a difference a year makes when it comes to attitudes towards corporate gearing. Companies once lauded for having ‘ballsy borrowings’ are now as popular as Scrooge himself on Christmas morning. The global credit squeeze brought to front and centre the stress debt can place a company under. And the 180-degree about-face on what now…
CFD fever hits Singapore
Peter Oxlade, senior vice president and head of CFDs & Securities for Man Financial, is under no illusions: establishing a viable presence in Singapore’s fledgling CFD market – and the wider Asian region – will be no walk in park. But he’s convinced, after slightly less than a year in Singapore, it’s a walk a…
Efficient Market Hypothesis
For some share enthusiasts, the EMH is not a nice thought. The theory argues that careful share selection based on myriad factors, including analysing company financials, reading news and analyst opinions or charting historical share prices is pointless. The concept of analysing whether a company is under-or over-valued relative to its current market price is…
