Can IAG float our boat?

IAG's 'float' is recorded as an accounting liability, but it's a huge source of hidden value.

Suppose that Westpac has introduced a flashy new credit card with a unique set of terms and conditions. Like an ordinary credit card, this one offers a revolving loan of say, $10,000; but, unlike normal credit cards, it charges no interest and no fees. As long as you make your monthly repayment, you can keep the card maxed out.

You may have spotted the opportunity. Why not withdraw the $10,000 and put it into a savings account to earn interest?

Float is low cost leverage

Historically, better than free

Fair price; Hold

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles