South Canterbury Finance Limited

[Enumerate]

Yes, but would you put your cash into SCF?

Yes, I have.

The SCF010s were attractive, because of the partial guarantee and the high yield - 30%. I decided against this.

Investing SCF020/SCF030 with 12% yields, full guarantee, and the ability to roll them on maturity to "help out", is attractive. I decided against this.

Investing in new debentures at 8.25% with full guarantee, is attractive, and "helps out" with new money. I decided against this.

The SCFHA's are an insane yield - but are the highest risk due to deep subordination of the debt and lack of guarantee.

I went for the SCFHA ... because I have spent the last month extrapolating the SCF balance sheet from Dec '09 to current, incorporating the likely structural outomes, estimating the effect on the balance sheet ... I have been following up changes to SCF subsidiaries on Comapnies Office filings to understand what structural changes are happening in the background ... I have been analysing the debenture prospectus and the various Trust Deeds to understand the senior debt ... I have been following every scrap of publicly released news including following the various commentators.

In short, I put myself into an acceptably risky position with the expectation of the greatest return based on being as fully informed as I can possibly be.