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I'd imagine Macquarie's hedge positions are pretty opaque, but...

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Mastatrada

922 Posts.

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14/02/24

15:34

Post #: 72405130
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Originally posted by Contrarian4me: ↑

I don't think it works that way. The reason the bank forces the hedge when loaning money is because they don't want to gamble on the gold price. I would imagine that Macquarie is purely taking delivery of the gold to forward to the actual buyer on the other side of the contract at $2,350 oz for a brokerage fee. Perhaps someone knows for sure.

Macquarie however may have guaranteed CAI's delivery to the other side of the contract however at $2,350 oz which if the case, would be a reason for Macquarie to not want Calidus to go under. If this was the case, Macquarie would have to buy at spot $3,000 say to sell to deliver the hedge at $2,350 oz, thus losing $650 per oz for the remainder of the hedge.

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I'd imagine Macquarie's hedge positions are pretty opaque, but either way, as you say they'd be forgoing the difference of 650 if CAI go broke and therefore, would seek to avoid that outcome

CAI Price at posting: 15.0¢ Sentiment: Hold Disclosure: Held
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