Single stock portfolios

A diversified portfolio presents a lower security risk for the lender than a portfolio that is dominated by a single stock. If the value of one stock in your investment portfolio increases to a certain percentage, your loan provider may define this as a single stock portfolio (SSP). This may affect the conditions of your margin loan.
Why are single stock portfolios significant?

Definition of an SSP
This varies per provider. A portfolio securing a BT margin loan may be considered to be a single stock portfolio if the market value of one stock is 75% or more of the total market value of the portfolio.

Lending ratio
Your loan provider may reduce the lending ratio allowed against stocks in the portfolio.

There may be some stocks where single stock portfolios are not allowed.

Find out more about lending ratios and how much you can borrow.
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Loan conditions
Single stock portfolios incur different margin loan conditions depending on the stock and the loan provider.

For most single stock portfolios with a loan-to-valuation ratio (LVR) lower than 60%, the loan provider will reduce the margin loan that can be raised.
  
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