Hey......
Stop taking the Pisss outa Rata trees
BB
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Where is the snoop dog, haven't seen any activity from his acutely sensitive snout sniffing out problems lately ? That must mean that we're all hunky dory for setting sail northwards for $1.60 by year end then :)
Only up 4 cents today................not very good, really!!
Will have another look at HNZ at some point. The real problem I had with HNZ was the capital ratio requirements, since eased, by the Reserve Bank. So no need to watch the HNZ ball so closely at the moment. Have thrown my own NZ finance hand in with TNR (was DPC). Nothing wrong with HNZ now. Nevertheless I think from here on in, TNR will prove a better investment than HNZ, particularly for TNR bondholders. But I didn't want to upset the HNZ faithful by saying so - oh heck, I just did!
SNOOPY
The on going Credit Ratings up grades for Heartland, and The Reserve Bank lowering Heartland's capital ratios, are just further proof of how wrong your Heartland posts were.
I would however agree with you that TNR's is a fine company,and an investment with a great future under Paul Bynres's very capable guidance .
I hold both HNZ and TNR.
A cloud on the Golden horizon?? Maybe.........maybe Not??
http://www.stuff.co.nz/business/mone...erse-mortgages
I think it is a positive if the RB takes interest in this form of lending and applies appropriate controls on it early. NZ does not want any cowboys to enter this market. It is and will be a very controversial method of lending and many families in line for inheritance from their parents will not like it.
I think it is a great way to allow asset rich cash poor older people to enjoy their sunset years using their hard earned assets. It will only ever be used by a fairly small proportion of older people that prefer to stay in their homes rather than go to retirement homes.
Thank you for the link.
Just love The Reserve Bank moving to "PROTECT" ASB's and HNZ's position.
I think SBS also offer REL loans.[and TSB?]
From what I have read, Heartland, rather than being caught with houses where the owner has no equity left, have been finding the loans are being repaid a lot earlier than forecast.This has led to a smaller loan book and slower growth than expected.
Government agencies around the world are encouraging old people to remain in their home,by offering more home help services.It is felt people are happier,and stay in better health in their own home.I therefore see this as a growth sector.With the likes of solid banks offering RELs,I think we will see RELs a suitable product for asset rich,cash poor,property loving NZders.
That is a revisionist view on history you have on Heartland Percy.
The BBB- credit rating was because of the acknowledged risk of the Heartland loan portfolio by the credit rating agencies. The high capital requirement set for Heartland by the Reserve Bank was because the loan portfolio was so risky. A strong property market subsequently allowed Heartland to ease their way out of their dodgy Central Otago property lending. That in turn allowed the reserve bank to ease their requirements on capital held by Heartland and allowed the credit rating agencies to upgrade Heartland's credit rating to BBB. But, and here is the point, that recovery in the property market was never a given. If it hadn't happened, then Heartland would very likely have required a substantial capital injection from shareholders to keep it afloat.
The fact that a large capital injection was not required does not mean that my warnings that Heartland were at risk in the event of a the property market downturn should have been ignored.
SNOOPY
Histories are always written from a particular view-point usually to prove that particular view-point.
For the future:
There is ALWAYS Risk.
Much of it can be understood and quantified.
But there is always a possibility of a flock of Black Swans flying by and pooping on you.
Best Wishes
Paper Tiger
Disc: Still like the Risk/Reward ratio for HNZ - but that is just one view-point.
A few years ago my Mum at 80 years of age faced a long and very debilitating 18 month wait for a hip replacement through the public health system. She is of scotch ancestry, (where I get my tight arsed accountant habits from lol), so asked me what I thought of her spending the five figure sum to go private. I told her don't be so silly as to seek my approval, just go ahead and get it done. She's 85 now and leads quite an active life.
Older folks can go downhill very, very fast if they're ostensibly confined to a wheelchair for a significant period of time. This type of situation is where I see home equity release loans as absolute GOLD !! Mum has a few quid set aside so doesn't need one but I reckon HNZ providing this facility to older folks who do need it are really providing a very worthwhile facility.