DnB NORD Bankas ups initial margin ratio for repo deals

Published: 3 February 2010 y., Wednesday

DnB NORD banko logotipas
DnB NORD Bankas, the leader of the country’s in investment products market, raises initial margin ratio for repurchase deals (repo deals) for most actively traded Lithuanian and Estionian shares. Currently the customers of DnB NORD Bankas will be offered to make repo deals using 70 percent initial margin ratio.

“The recent bull trend in the Baltic markets lifted the liquidity significantly and as a result, investors are looking for a bigger leverage. Therefore we decided to increase the initial margin ratio to 70 percent from previous 50 percent that provides triple leverage and offering more opportunities for investors to earn more in a rising market,” says Mindaugas Tutlys, Manager of DnB NORD Bankas’ Capital Markets Unit.

In a repo deal the client borrows funds by temporarily selling securities to the bank and repurchasing the same securities for a pre-agreed price in the future. The loan amount depends on the market price of the financial instrument and the initial margin ratio set by the bank.

In bull markets repo deals are frequently used as financial leverage enabling investors to boost the yield of their portfolio. Because of the higher market risk inherent in such deals, AB DnB NORD Bankas offers this service to advanced investors only.

AB DnB NORD Bankas is the only bank in the local market which offers repo deals online. As a result of such online service, clients can respond fast to market swings and make appropriate investment decisions. Using the same on-line platform clients can trade securities online at particularly favourable commission fees. Information about the fees and interest rates for repo deals are presented on the web page www.dnbnord.lt

AB DnB NORD Bankas is a universal commercial bank that provides comprehensive range of banking services to individual and corporate customers. The bank is part of Denmark-based DnB NORD banking group that was established by the Norway’s largest bank DnB NOR ASA and North Germany’s largest bank Norddeutsche Landesbank Girozentrale (NORD/LB).

Šaltinis: www.dnbnord.lt
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Emerging Market Countries Partner with World Bank to Achieve Risk Management Objectives

The World Bank is seeing a surge in demand from borrowers seeking the Bank’s expertise to mitigate currency and interest rate risk. more »

State aid: Commission authorises support package for Lithuanian financial institutions

The European Commission has approved under EU state aid rules a Lithuanian package intended to stabilise the markets as a response to the global financial crisis. more »

European Commission forecasts average crop production for 2010 in the EU despite extreme weather

Total cereal production in 2010 should be close to the average from the last five years. While the yield per hectare will be 5% above average, overall cultivated areas have decreased. more »

In the first half of this year AB Bank SNORAS and its financial group worked profitably

According to the unaudited data, AB Bank SNORAS profit prior to provisions and tax exemption within the first half of this year comprised LTL 51 million, the bank formed almost LTL 48 million provisions. more »

Denmark: EU €10m to help 1,149 former Linak A/S and Danfoss Group workers find new jobs

The European Commission today approved two applications from Denmark for assistance from the EU Globalisation Adjustment Fund (EGF). more »

EIB provides EUR 150 million innovative recovery support loan to SMEs in Turkey

The European Investment Bank today signed two loans for a total amount of EUR 150 million in support of small and medium-sized enterprises (SMEs) in Turkey. more »

AB Bank SNORAS will increase the authorized capital by LTL 82.3 million up to LTL 494.2 million

On 23 July 2010 the Board of the Bank of Lithuania permitted Bank SNORAS to register a change to the articles of association related to the increase of the authorized capital of the bank by LTL 82.3 million up to LTL 494,217,107. more »

Heads of State, WB President Zoellick Agree on Action Plan to Boost Integration and Development

Heads of State and top officials from the Central American Integration System and World Bank Group President, Robert B. Zoellick, agreed to join efforts towards regional cooperation and integration and adopted a comprehensive agenda that includes an action plan with more than 20 specific measures. more »

IMF Executive Board Cancels Haiti’s Debt and Approves New Three-Year Program to Support Reconstruction and Economic Growth

The Executive Board of the International Monetary Fund (IMF) today approved the full cancellation of Haiti’s outstanding liabilities to the Fund, of about SDR 178 million (equivalent to US$268 million). more »

IMF Completes Third Review Under Stand-By Arrangement with Latvia and Approves €105.8 Million Disbursement

The Executive Board of the International Monetary Fund (IMF) today completed the third review of Latvia's performance under an economic program supported by a Stand-By Arrangement (SBA). more »