ANZ seeks safety in diversified share investing

ANZ Bank say they would market a “diversified margin loan”, one aim for ANZ is to encourage customers to invest in the equities of at least four different companies. ANZ’s head of margin lending said the bank’s analysis of the greatest risk, to the bank and their customers, from margin lending, arises from customers who invest in the equities of only one company. The bank will allow customers to borrow a higher percentage of the share price on each stock (in excess of 80 per cent on some stocks) and will allow customers to borrow to invest in a list of more than 1,000 stocks, more than double the list approved by other margin lenders. The condition is that customers invest in at least four stocks and have no more than 25 per cent of their margin loan-funded investments in any one stock.