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15-07-2009, 10:04 AM
#101
Originally Posted by bermuda
BB,
My sources predict a very tenuous time for SCF. One source told me to get out quite a while ago....and I am so glad I did.
Old Alan Hubbard, he went to his cupboard.
To offer his farmer friends a loan.
When he got there, the cupboard was bare.
So they were marched off their lands, with a groan.
Surely Bermuda, it hasn't come to *t h i s*
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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15-07-2009, 11:52 AM
#102
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15-07-2009, 12:13 PM
#103
Intersting how the govt guarantee affects pricing of SCF bonds/notes
Those maturing before the guarantee end date yielding 7% but the 2011 ones are at 14% and the 2013 ones at 16/17%
Probably how the market sees the risk which could make it interesting if they go after more market money soon .... but suppose 10% and recomendations from the likes of Lee and others would get them over the line
Are those Perpetual Preference Shares government guaranteed?
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15-07-2009, 12:28 PM
#104
Originally Posted by The Doctor
goes tits up...you get your money back...no interest of course.
You get interest up to the day of default
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15-07-2009, 03:12 PM
#105
Perp Pref Shares
I would also like to know what effect the Govt guarantee scheme has on these, if any.
Unfortunately on IPO i reccomended them to a charitable trust i'm on, & recall we were told they were considered safer than govt stock at the time! Both we, & our advisor, assumed they were like bonds, didn't realise they apparently are just pref shares.
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15-07-2009, 04:31 PM
#106
Originally Posted by The Doctor
goes tits up...you get your money back...no interest of course.
A good reason why you need to do your own research. Yes, all your capital back, but you do get all your interest as well. And SCF were still offering 10.25% for 18 months, after the guarantee came into effect.
Last edited by biker; 15-07-2009 at 04:33 PM.
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15-07-2009, 05:48 PM
#107
Member
Hmmmm high interest high risk
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15-07-2009, 06:09 PM
#108
Originally Posted by rainey
Hmmmm high interest high risk
Zero risk (and you don't get that very often) when it is guaranteed by the NZ tax payer.
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15-07-2009, 10:19 PM
#109
Member
Zero Risk?? No such thing. Ever tried lodging a largish insurance claim , and seen a sudden loophole or force majuere or disclaimer appear? The Govt gaurantee is only as good as the reasonable disclosure of the companies state of affairs at the time they entered the scheme. If this was in any way 'fudged' then the Govt has their 'out'. Hence perhaps the near-term 'gauranteed' bonds 'gapping up' today?
M
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15-07-2009, 10:26 PM
#110
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