What u saying is showing that bottom of economy is round the corner ...as markets are forward looking by at least 6 months plus if it can get good sense of future certainty ...now maybe the market bottom time ....HGH time !!
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U have better experience of reading and making charts ...which is predicting the possibility of future based on past experiences ...so I will request u to enlighten us please
PS : But I remember this for surely ...that at every bottom all but few thought its not going to get better ever ...last one was GFC
I’m curious - in a bad economy, is there more or less demand for reverse mortgages?
probably more but the arrears and write offs are a problem.
I remember once a guru bad bank manager (someone that helps customers in deep trouble) once told me for every $100,000 in write offs the bank had to write $5,000,000 in new lending to cover it.
This is the only concern in a bad economy. Have HGH provisioned appropriately or is there some more skeletons in the closet that need to come out?
This is going to get bumpy, strong selling side this morning
...and what are they finding with their aquisition in Australia. From my working days it was "interesting" when we bought something...how much we didn't know.
Can sometimes take a while to fully unravel. My hope with this one (yeah, I know hope is not a strategy), is that they had a fair while chewing it over before completing the deal. So hopefully they had enough time and access and expertise to assess it accurately. Fingers crossed is all I can do right now.
On the plus side..HGH is no longer the biggest stock I hold......:eek2:
If i recall correctly, the reverse mortgages are relatively very low risk with the average reverse mortgage being a very low balance vs the value of the property.
The main immediate advantage of the Challenger bank acquisition is all those reverse mortgages being written in OZ have had the cost of funding significantly reduced by a couple hundred basis points.