CTO citigold corporation limited

Speaking from several recent experiences re margin calls, hopes...

  1. 480 Posts.
    Speaking from several recent experiences re margin calls, hopes this helps:-

    The margin loan provider will only give a day or two for the holder to either sell down stock or top up the account with cash or other shares to bring the portfolio within acceptable LVR's. (loan/value ratio)

    Just because CTO LVR has been reduced to %0 does not necessarily mean a holder would have to sell CTO, providing they hold other stocks on the account and their total LVR is within LVR limits. If someone held only CTO on margin with CBA, then either all shares would have to be sold or a large cash injection would have to be made (in this case for example a $20k margin loan would require $20k cash to be deposited or held in the account)

    Lockitt you are sort of correct. With CTO LVR being reduced to %0 with CBA any current or new CTO shares will have nil LVR value. Doesnt mean you cant continue to hold or buy in the future as its all about the LVR of the total portfolio. (thats how my margin lender operates) CTO's price in the future will have zero effect on the need for holders to top up equity. That is provided CBA's CTO LVR remains at %0.
 
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