Originally Posted by
Snoopy
Ziggy, it is 'Heartland Bank' (HBL) that is paying back the Aussie bond. You correctly point out that HGH is on a mission to expand in Australia. Rest assured that the HBL bond will be replaced with an equivalent HGH bond, and further out, yet more HGH bonds. If HGH held bonds in the name of a bank, then the Aussie Reserve bank would want to take a look as would the NZ Reserve bank (because HBL is NZ based). So best to keep everything away from those pesky regulators by getting the word 'bank' out of the bonds. IIRC all this was signalled in the proposed corporate restricting document that all shareholders voted on.
Where did you see that CBA are pulling out of reverse mortgages in Australia in January? That is sensational news because they are by far the largest player in Reverse Mortages in Australia. I doubt if Heartland (HGH) could buy them out without a significant capital raising. CBA may elect to keep their existing REL book, and not take on any new business like Westpac did IIRC.
SNOOPY