A flexible risk management solution

 

What a Macquarie Tailored Equity Collar offers

Protection at maturity

Reduce the risk of a large single shareholding

Diversification

Diversify by borrowing against a concentrated share position

Cost-effectivness

Reduce cost by capping returns

Borrow against a company shareholding to invest in other assets.

Minimise the upfront cost of protection by capping the return on the shares.

Borrow up to 100% of the underlying securities' value.

Tailor the term and choose from a range of settlement techniques.

As with any investment, there are risks associated with a Macquarie Tailored Equity Collar, including:

  • Performance risk: The value of securities may go down by a material amount, even over a short period of time.
  • Borrowing to invest: Leverage can magnify gains and losses on an investment.
  • Breakeven risk: To make a profit on your investment, the total value of any gains (subject to any applicable cap) and any distributions from your investment throughout its term will need to exceed your total interest payments and other costs, including break costs.
  • Early termination risk: Macquarie may terminate your Tailored Equity Collar investment early in certain circumstances or you may choose to terminate the investment early. In these circumstances, you may need to pay any break costs, interest charges, fees and other costs that may apply, which may be substantial. Additionally, loan principal protection only applies at maturity, and does not apply if either you or Macquarie terminate the investment early.
  • Insolvency risk: If Macquarie fails to perform its obligations, for example if it becomes insolvent, you may not receive a payment which you are entitled to receive.

About a Macquarie Tailored Equity Collar

Macquarie's Tailored Equity Collar is a flexible, customisable funding and risk management solution for:

  • wholesale clients looking to borrow to invest in Australian shares on a risk managed basis; and
  • company executives with large single shareholdings or employee option positions.

 

Who may a Macquarie Tailored Equity Collar be suitable for?


The Macquarie Tailored Equity Collar may suit you if you are a senior executive or wholesale client who would like to access funding to minimise the risk associated with having a single large shareholding.

Minimum investment

The minimum investment in a Macquarie Tailored Equity Collar is $1,000,000.

Find out how we can help


If you'd like to speak to a Macquarie specialist about how our expert team can help your business, get in touch.