Guest Cameron Posted October 25, 2017 Share Posted October 25, 2017 Anyone have any insight into this area? Its blown up since 2009, firms allow wealthy clients to borrow against their portfolio with only 5-10% collateral so long as they don't put it into the stock market. I've read the market is around $300-550 billion which increases margin debt by a incredible amount. Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 25, 2017 Share Posted October 25, 2017 We talked about this a bit back. Take a look: http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/asset-based-lending/msg217411/#msg217411 Link to comment Share on other sites More sharing options...
Guest Cameron Posted October 25, 2017 Share Posted October 25, 2017 We talked about this a bit back. Take a look: http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/asset-based-lending/msg217411/#msg217411 I don't understand the optimism, loaning against a liquid asset to purchase non-liquid assets. What stops someone from opening another brokerage and investing with 10-20x leverage as well? Link to comment Share on other sites More sharing options...
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