Contrary to popular belief I do not know everything
Quote:
Originally Posted by
Snoopy
I see the note PT, but I don't get it.
If you have a securitized banking facility, I understood that this was your own debt repackaged as a saleable entity that was onsold to a third party. So if the ABCP trust has a facility of $400m and the CBS Warehouse Trust has a facility of $100m , what you are saying is that the actual amount of debt sold into those trusts was actually far less than that ($259m)? Why would any buyer of securitized assets purchase an unknown variable amount of debt? How would they know what to pay for a debt package of indeterminate size?
SNOOPY
I do not know and I guess in this instance I do not particularly care that I am in ignorance.
But can I read the accounts and that is what it says, I am willing to accept that they are correct.
I see that PGW selling down yesterday has caused a few minor ripples. Wish I had had a buy order in at $0.84.
Best Wishes
Paper Tiger
Chance of HNZ default 1 in 30 over 5 years (?)
Looking into the credit worthiness of Heartland I pulled up this from the Reserve bank website on explaining credit ratings:
http://www.reservebank.govt.nz/regul...ks/3498179.pdf
Probability of default is listed at 1 in 30 over 5 years for BBB rated bank. BB is a 1 in 10 default chance, so maybe BBB- the Heartland rating is about 1 in 20?
Interested to see that the Co-operative bank also has a BBB- rating now.
http://www.reservebank.govt.nz/regul...redit_ratings/
I thought they were lower than that!
SNOOPY