For years, outgoing Tabcorp chairman Paula Dwyer held Tabcorp shares as collateral for a margin loan. A situation that changed in March when she sold all of them while buying up shares in another, unencumbered vehicle.
The risks of margin loans are well known. Warren Buffett describes them as "crazy" and "insane", merely in a personal financial sense. In public companies, the risks are broader.
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Myriam Robin is a senior writer based in the Melbourne newsroom. She has previously been a Rear Window columnist and editor, and before that reported on financial markets and media. Connect with Myriam on Twitter. Email Myriam at myriam.robin@afr.com
