South Canterbury Finance Limited

[Lizard]

Any thoughts on how secure funding for Marac and UDC will be without debenture holders post GG?

Seems to me that there have been a lot of funds found their way into Marac/UDC which will be reluctant to go back there post guarantee on any terms. SCF failing now probably final nail in coffin for any confidence from debenture holders. I haven't looked closely enough at these to know whether they are likely to have sufficient funding without debenture deposits.

Also expect a gathering wave of money coming out of these and looking for a new home - maybe in bank TD's but where else? Listed and unlisted bank bonds - though already yields are getting quite low on these and investors needing to pay above face value on many.