Shares in Yellow Brick Road Holdings Limited
(ASX:YBR) jumped 25 per cent yesterday after exiting a trading halt and announcing a tie-up with Macquarie Group Limited
(ASX:MQG).
Confirming market speculation Australia’s largest investment bank and Mark Bouris’ Yellow Brick Road have joined forces to take on the big four banks in the mortgage market.
Both companies will develop branded banking and wealth management product and services including the terms of a new mortgage funding and distribution arrangement.
As part of the deal Yellow Brick Road will offer a 1.15 per cent discount off the base rate of 6.65 per cent for the first 12 months on new home loans and offer discounts for the life of the loan.
Shares in Macquarie Group also gained following the announcement, closing 1.67 per cent higher at $31.74
Yellow Brick Road Holdings posted a net loss of $6.8 million in the 2012 financial year.
