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Old 06-08-2011, 06:46 PM
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Originally Posted by Unregistered View Post
I think you are mistake , leverage up 50% is not the same as gain 50%.
But leverage can up your % of return. You want the magic of leverage, I will show you

Buy bond 10 year, pays, 6%
Take leverage 1 month at 1.5%
Increase return 4.5%

Assuming 1 M
1M earns 6% (60000)
0.5M leverage earns 4.5 % (22500)
total earn 85000 for client or 8.5%

RM earns on income from bond AND leverage income.

Dont jump the gun before understanding leverage. If so, banking business is not for you.

As for the banker who proclaim you churn. Well. its a matter of surviving in the business. Sure you have to meet your target. But if you can meet it once and not ever again as a result of churning, where will you be in 3 years time?

ans : Another bank.
There are more products out there that are not necessary churning. Ie insurance, SBLC and if you are in the super league, IPO and big ticket loan items. All these will provide you the revenue you need.

In this business (private banking)its about working smart, not necessary working hard.
A true blue private Banker is unlike a priority banker.

Just trying to give a different pespective of Private banking
I work in a top tier PB bank, surprised by your hunger to push products, the way you manage the client money will eventually put in the bad books of the ultra-high networth community. Better keep your reputation, as it is a small community, and they will talk among each other. I believe you will out of PB if you believe in screwing the clients
Most of the clients networth these days are tied up in non-liquid assets e.g shares of their IPO company, plantations, etc Their LTV is marked lower due to tight credit control these days, so cant leverage much further.

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