please correct me if I am wrong but I don’t see how Macquarie is making big money from the hedging. I would have thought they generated some fees and perhaps a little margin but that’s all.
They required the hedge as part of the finance but I would think Macquarie would have immediately placed the CAI hedges into the futures market themselves. I can’t imagine Macquarie being exposed to price fluctuations, that would be betting on pog going up, which we may all believe in but a big bank wouldn’t expose themselves to the chance of that going the other way.
If I misunderstand the process here please do correct me.
ps: Macquarie still making good money off the interest though.
CAI Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
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