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19-04-2015, 09:26 AM
#4831
Originally Posted by K1W1G0LD
Thank you for the link.
Just love The Reserve Bank moving to "PROTECT" ASB's and HNZ's position.
I think SBS also offer REL loans.[and TSB?]
From what I have read, Heartland, rather than being caught with houses where the owner has no equity left, have been finding the loans are being repaid a lot earlier than forecast.This has led to a smaller loan book and slower growth than expected.
Government agencies around the world are encouraging old people to remain in their home,by offering more home help services.It is felt people are happier,and stay in better health in their own home.I therefore see this as a growth sector.With the likes of solid banks offering RELs,I think we will see RELs a suitable product for asset rich,cash poor,property loving NZders.
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19-04-2015, 10:20 AM
#4832
Originally Posted by percy
The on going Credit Ratings up grades for Heartland, and The Reserve Bank lowering Heartland's capital ratios, are just further proof of how wrong your Heartland posts were.
That is a revisionist view on history you have on Heartland Percy.
The BBB- credit rating was because of the acknowledged risk of the Heartland loan portfolio by the credit rating agencies. The high capital requirement set for Heartland by the Reserve Bank was because the loan portfolio was so risky. A strong property market subsequently allowed Heartland to ease their way out of their dodgy Central Otago property lending. That in turn allowed the reserve bank to ease their requirements on capital held by Heartland and allowed the credit rating agencies to upgrade Heartland's credit rating to BBB. But, and here is the point, that recovery in the property market was never a given. If it hadn't happened, then Heartland would very likely have required a substantial capital injection from shareholders to keep it afloat.
The fact that a large capital injection was not required does not mean that my warnings that Heartland were at risk in the event of a the property market downturn should have been ignored.
SNOOPY
Last edited by Snoopy; 19-04-2015 at 10:22 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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19-04-2015, 11:05 AM
#4833
Originally Posted by vorno
Oh yip, sounds like a pretty average day aye?!
Good one vorno
However the average day over the last 50 has been slightly negative .... Friday is an outlier
Reversion to the mean next week and price back to 130 or less
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19-04-2015, 11:11 AM
#4834
Originally Posted by percy
Must be time for you to go and talk to the Rata trees.
A good chance for you to practice your Maori pronunciation,as I expect all your questions for Jeff at the next AGM to be in Maori.!!!!
Good one percy .... the only thing is that at the rate the HNZ share price is going I wont be a share holder come next AGM
Ka kite anō. Kia pai tō rā
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19-04-2015, 11:14 AM
#4835
Originally Posted by K1W1G0LD
After being lambasted last weekend after mentioning greedy anti-social bankers and worse still mentioning Shylock I make no comment on this article
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19-04-2015, 11:41 AM
#4836
Member
Originally Posted by winner69
Good one vorno
However the average day over the last 50 has been slightly negative .... Friday is an outlier
Reversion to the mean next week and price back to 130 or less
You could always do the trader route, sell now at $1.33 and buy-back at $1.29!
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19-04-2015, 12:07 PM
#4837
Originally Posted by winner69
After being lambasted last weekend after mentioning greedy anti-social bankers and worse still mentioning Shylock I make no comment on this article
Chill W69, enjoy you're weekend............................it aint all bad news!!
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19-04-2015, 03:57 PM
#4838
If you are playing in the Ball Game - Watch the Ball
Originally Posted by Snoopy
Will have another look at HNZ at some point. The real problem I had with HNZ was the capital ratio requirements, since eased, by the Reserve Bank. So no need to watch the HNZ ball so closely at the moment. Have thrown my own NZ finance hand in with TNR (was DPC). Nothing wrong with HNZ now. Nevertheless I think from here on in, TNR will prove a better investment than HNZ, particularly for TNR bondholders. But I didn't want to upset the HNZ faithful by saying so - oh heck, I just did!
SNOOPY
The real problem that you had with HNZ was that you did not understand it.
The real problem that you have with HNZ now is that you do not understand it.
Best Wishes
Paper Tiger
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19-04-2015, 04:07 PM
#4839
There is ALWAYS Risk
Originally Posted by Snoopy
That is a revisionist view on history you have on Heartland Percy.
The BBB- credit rating was because of the acknowledged risk of the Heartland loan portfolio by the credit rating agencies. The high capital requirement set for Heartland by the Reserve Bank was because the loan portfolio was so risky. A strong property market subsequently allowed Heartland to ease their way out of their dodgy Central Otago property lending. That in turn allowed the reserve bank to ease their requirements on capital held by Heartland and allowed the credit rating agencies to upgrade Heartland's credit rating to BBB. But, and here is the point, that recovery in the property market was never a given. If it hadn't happened, then Heartland would very likely have required a substantial capital injection from shareholders to keep it afloat.
The fact that a large capital injection was not required does not mean that my warnings that Heartland were at risk in the event of a the property market downturn should have been ignored.
SNOOPY
Histories are always written from a particular view-point usually to prove that particular view-point.
For the future:
There is ALWAYS Risk.
Much of it can be understood and quantified.
But there is always a possibility of a flock of Black Swans flying by and pooping on you.
Best Wishes
Paper Tiger
Disc: Still like the Risk/Reward ratio for HNZ - but that is just one view-point.
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19-04-2015, 04:40 PM
#4840
A few years ago my Mum at 80 years of age faced a long and very debilitating 18 month wait for a hip replacement through the public health system. She is of scotch ancestry, (where I get my tight arsed accountant habits from lol), so asked me what I thought of her spending the five figure sum to go private. I told her don't be so silly as to seek my approval, just go ahead and get it done. She's 85 now and leads quite an active life.
Older folks can go downhill very, very fast if they're ostensibly confined to a wheelchair for a significant period of time. This type of situation is where I see home equity release loans as absolute GOLD !! Mum has a few quid set aside so doesn't need one but I reckon HNZ providing this facility to older folks who do need it are really providing a very worthwhile facility.
Last edited by Beagle; 19-04-2015 at 04:42 PM.
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