Avg price/book value over last 5 years is 1.26.
$1.44 x 1.26 = $1.81 sp.
I can see why they set the price at $1.80. All starting to make sense
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Centrix managing director Keith McLaughlin says a simultaneous increase in demand for credit, and in arrears, points to people being under pressure to meet repayment obligations
https://www.interest.co.nz/personal-...neous-increase
interesting auto arrears have been increasing mth on mth
interesting article, thanks for sharing!
applies to TRA and HMY as well.
See auto loans are a way off normal arrears levels. this is why HGH raising capital at the top of the cycle is a excellent move ay.
Because i am a glass half full type of guy.... when things get tight, as a funder, you end up picking up a whole bunch of typical cash buyers, for various reasons. And these customers are AAA+ Helps a bit in offsetting the increasing arrears on the book.
Just as well there's a below average sometimes
$1.44 x 0.97 = $1.40
But thats crazy stuff. there is no way the sp will trade 0.97x book value nowadays.
This did happen before thou- June 2014. This was a few months after HNZ announced a $87m acquisition of Seniors Money International's NZ and Aus Home Equity release mortgage business.
They raised $20m to partially fund it. $15m placement and $5m share purchase plan.
But yeah like i say, crazy crazy stuff. No similarities here
Heartland Bank raised their reverse equity rate by another +25 bps to 7.75%.
That’s good
In interest.co.nz ….do Heartland access this cheap money from RBNZ.
Another bank took $100 mln from the Funding for Lending program (FLP), taking the total accessed to $14 bln so far. We don't know who took this funding but it unlikely to have been one of the big four Aussie banks. (They don't get out of bed for less than $500 mln usually, from this source.) So a back of the envelope calculation suggests $100 mln will fund about 200 transactions? The whole FLP program is now only scheduled to run for another 90 days, so we might see a flurry of final activity in this space.