| Mobile Web

Search results for margin loans

Crypto

Strategy holds 844,447 bitcoin but faces risks if funding dries up

An analysis says Strategy’s bitcoin accumulation strategy is driven more by its access to capital markets than by bitcoin’s price. The company is estimated to face about $1.76 billion a year in dividend and interest costs, which could become hard to cover without new funding unless it sells bitcoin. Researchers highlighted structural risks tied to about $22 billion in debt and preferred claims and said key indicators include preferred share prices and liquid assets.

Finance

Margin trading debt investing rises again as brokers tighten credit trading rules

Credit-financed stock investing in South Korea is rising again as market volatility increases. Margin loan balances, which had fallen to the 27 trillion won range early this month, have climbed to around 33 trillion won. Some brokerages have tightened internal risk controls, including lowering credit limits for clients aged 80 and older. Forced selling linked to unsettled trades has also increased in recent months.

Finance

Korean retail investors pay 10 percent premium for SK Hynix ADR

Korean retail investors sharply increased purchases of U.S. stocks during a domestic market correction, with July net buying at about $4.5 billion, CNBC reported. SK Hynix ADRs drew about $840 million, ranking second in Koreans’ U.S. securities net buying, even though the shares are available at home. Arcadian Asset Management’s Owen Lamont said the ADR traded about 10 percent above the Korean shares and called the buying abnormal.