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Art lenders issue margin calls as painting prices fall

Specialist lenders in the $40b sector have issued margin calls as the value of paintings pledged against loans has fallen, asking borrowers to make up for the decline by handing over cash or swapping in more expensive artworks.

“Most of ours have actually settled in cash, given the strength of our borrower base, but others have provided additional collateral if that’s something that they wanted to do,” Ganepola...