So very true.."He who pays the piper calls the tune."
Maybe next year if Fitch's want to increase their fees.?.lol.
However HNZ still remains,as far as I know,the only listed NZ company, that reports quarterly to The Reserve Bank of NZ.This is a great safety net for any HNZ investor .
Some take-out from Fitch's report.
"...I guess the only surprise to me ,was after reading such glowing commentary, Fitch's did not upgrade HNZ's credit rating.!!! lol.
The potential clouds on the horizon seem to be those facing the NZ economy in general: slower NZ growth rate and high household leverage and high property prices posing a risk to the financial system.
The potential clouds on the horizon seem to be those facing the NZ economy in general: slower NZ growth rate and high household leverage and high property prices posing a risk to the financial system.
Lucky haha .................................another myth exposed.
they don't make Guru's like they used to
The whole country got lucky but most especially directors in HNZ that thought their dairy loan book didn't need prudent level's of extra bad debt provisioning. As for me, I'm happy to have sold out at $1.32 months ago and reinvested in stocks like SKL and AIR that have made solid moves up by 10% or more not down by 10% and before you bring up the fact that HNZ have just gone ex divvy so have both those stocks I've been buying in good volume....be a lazy pirate or a proactive sucessful guru
"When you leave it to chance, then all of a sudden you don't have any more luck" Pat Riley.
Not really sure it was luck on the part of the HNZ directors.
Originally Posted by Roger
The whole country got lucky but most especially directors in HNZ that thought their dairy loan book didn't need prudent level's of extra bad debt provisioning. As for me, I'm happy to have sold out at $1.32 months ago and reinvested in stocks like SKL and AIR that have made solid moves up by 10% or more not down by 10% and before you bring up the fact that HNZ have just gone ex divvy so have both those stocks I've been buying in good volume....be a lazy pirate or a proactive sucessful guru
Dairy customers with 65% LVR loans have been struggling to honour their obligations for going on two years now and have required further bank support. The ECB will be lucky if the Greeks can repay their loans and HNZ are fortunate that the price has recovered and they stand a better chance to recover most of their's. Call it luck or a lucky increase in the GDT auction price or the natural swings and runabouts of the commodity market aided by the extra 50 cent interest free loan of Fonterra...whatever term grabs your fancy. I guess Fonterra were in a better position to cop a credit rating hit so they had to do something.
As a matter of record, banks anticipate an 8% delinquency rate for their credit card book
Scary stuff. Is it a coincidence that we saw a dramatic increase in doubtful debt write-offs and general consumer provisioning in the same half year that HNZ started lending through Harmoney ?
Is it a coincidence that the head man in charge of new product development resigned / was pushed around the same time as this dramatic new level of provisioning was made and he hasn't been replaced ?
Overseas evidence suggests the loan write-off's in PEP lending really start to accelerate in the second and third years so are these earlier initial provisions for bad unsecured loans just the tip of the iceberg ?
Interesting times lie ahead for this brave new frontier of lending.
Originally Posted by percy
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