Once bitten, not shy – investors again seek margin loans as stocks rally

NEW YORK: Global banks are seeing renewed appetite from wealth management clients to borrow money to buy stocks as markets rebound, bankers said, which comes just months after the strategy burned some investors.

Low interest rates as central banks support the global economy and the rapid rebound from the lows in March are leading investors to turn to margin accounts, where they borrow money from the brokerage to buy assets, in order to boost profits, several bankers familiar with the matter said.