The Macquarie bubble has burst, unearthing its COVID vulnerabilities – Sydney Morning Herald

It has leverage to the upside also, so at some point when markets and economies return to normal Macquarie should return to its positive trajectory. Therefore when the environment is favourable it over-earns. But when things go wrong it can receive a disproportionate hit to earnings. So large is Macquaries leverage – its cost base relative to revenue – that a relatively small fall in revenue can have a big impact on its bottom line.
Regardless, the earnings can be lumpy – not the least of which…

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