PET - Plain English Taxonomy

Name: MarginLoanTypeDimension
Label: Margin Loan Type Dimension
TREF ID: DM938
Type: Predefined
Description:
The information reported is categorised according to the type of margin loan.
Usage:

Dimension Members
Name Label TREF ID Description
NotStandardProtectedMarginLoan Not Standard Protected Margin Loan DV8721
Any margin loans that are not standard margin loans or protected margin loans.
ProtectedMarginLoan Protected Margin Loan DV8719
Protected margin loans have a maximum allowable loan-to-valuation ratio (LVR) of 100 per cent and the lender guarantees that the value of the borrower's underlying security will not be less than the value of credit outstanding at the end of the predetermined investment horizon. Borrowers with protected margin loans do not receive margin calls, but are charged a significantly higher interest rate than for standard margin loans. Protected margin loans in effect combine a standard margin loan with a put option on the assets purchased.
StandardMarginLoan Standard Margin Loan DV8720
Standard margin loans typically have a maximum allowable loan-to-valuation ratio (LVR) of 40 to 80 per cent, depending on the type of stock or managed fund that is provided as security for the margin loan. These loans are subject to margin calls if a decline in the value of the underlying security raises the LVR above the pre-specified maximum.