I assume we are not talking about anti-lock braking here?
In which case it is a good thing.
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I assume we are not talking about anti-lock braking here?
In which case it is a good thing.
With BKBM at about 5.7% at the moment does this deal imply the ‘buyers’ of these HMY loans will get a return close to 9%? And HMY get a pile more cash to lend
Stand to be corrected
Suppose that’s good
Bit of the same for me! Lots of terms from the big short when I looked it up.
Anyone (FM?) care to explain for us? I gather it ist a yardstick to measure a value of something? Which is something that has been missing or hard until now?
I was buying today/yesterday but not because I’m informed haha…
Aye its good.
Post something about it later in the weekend.
"Highlights:
• NZ$200million ABS priced for New Zealand personal loans-backed securities originated by Harmoney with a weighted average margin (at close) on the rated notes of 313bps over one-month BKBM achieved.
"
Asset-Backed Security (ABS): What It Is, How Different ...
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https://www.investopedia.com › ... › Trading Instruments
An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash ...
What Is an Asset-Backed... · Types of Asset-Backed... · What is an example of an...
They pile a bunch of loans into tranches and sell them to the super fund, Goldman Sachs, private equity etc. the buyers have rights to the loan cash flows in the event Harmoney goes into liquidation.
It is far cheaper than the bank warehouse funding they currently have.
Heartland bank run the largest securitization program in the country.
As the loans run off pretty quick you need to keep selling new tranches of new loans to the group of buyers. After awhile the buyers build trust and hopefully the rates get lower and lower for HMY.
Anyway that’s my basic understanding