Originally Posted by
hairdresser
Aha
Selling off the MV loan book valued at $147m. Probably at a significant discount to book maybe 10-30% ... Look forward to seeing their response to the NZX request.
If they're making 7.3% GM [their avearage overall lending margin, MV margins are likely to be higher] on the MV loans it will hit their GM by around $10.7m. Of course this may not be as bad as the write down they take on selling the book.
Selling a few reverse mortgages will not replace this income overnight.
$32m of Equity investments current valuation may be a little lower.
Capital adequacy must be pretty tight.
This would probably explain the recent decline in the SP.
Good luck to holders....