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stag11

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22/04/23

12:21

Post #: 67408378
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Originally posted by Watchfulbull: ↑

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.

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Your probably right, but they would only have agreed on that price if they thought the economics winds were blowing in their favour.
They probably would have closed out any protections they created when they saw the gold price advancing in order to generate a bigger return and rewrote them as conditions changed at least on a weekly basis.

CAI Price at posting: 22.5¢ Sentiment: Buy Disclosure: Held
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