Opes Prime rides out margin call surge
Broking firm Opes Prime said that it has not seen any significant increase in the level of margin calls to its clients during the share market plunge in January and early February. Distancing itself from the problems experienced by Tricom, Opes Prime said that it tends to lend against diverse portfolios of shares so that if the price of one falls it can usually increase the loan against other shares to make up the shortfall. Executive director, Julian Smith, said that even at the peak of market volatility margin calls did not exceed 7 per cent of the company's clients; this has now dropped back to 2 per cent and is decreasing quickly.
Source: The Australian Financial Review