ANZ.NZX - Anyone holding?

**skid** · 11-02-2016, 02:04 PM

With all this talk of banks it may be relevant to bring up the subject of ''cover bonds'' again---Those who have bought them (mostly Europeans)are actually ahead of depositors in the cue for payout if things did (god forbid)get serious.

Hard to believe they could actually sell rights over your money in the bank.

If my term deposit matured now instead of a month ago -I think I would have kept the dosh on call or maybe even Kiwi bonds.

Im starting to toy with the idea of shifting to smaller banks like TSB or Co operative,with less overseas exposer--less assets though----any thoughts anyone?

**winner69** · 11-02-2016, 02:10 PM

Originally Posted by macduffy

An interesting article from last week's AFR on the relative "values" of the big four Aussie banks and some of their overseas counterparts.

http://www.afr.com/business/banking-...social_twitter

Good article

Good question as well - Underlying this analysis is a crucial question: why should a bank trade at a premium to book at all?

**macduffy** · 11-02-2016, 03:05 PM

Originally Posted by winner69

Good article

Good question as well - Underlying this analysis is a crucial question: why should a bank trade at a premium to book at all?

Yes, good question indeed!

I suppose the answer lies in perceptions of how effectively management can work those assets to earn future income. I think that a wider question is : how relevant is "book value" in valuing many companies in 2016 when "assets" increasingly comprise intellectual properties which might be superseded and quickly made obsolete, leaving "hard assets" less relevant to a company's value?

**Beagle** · 11-02-2016, 08:39 PM

Originally Posted by skid

With all this talk of banks it may be relevant to bring up the subject of ''cover bonds'' again---Those who have bought them (mostly Europeans)are actually ahead of depositors in the cue for payout if things did (god forbid)get serious.

Hard to believe they could actually sell rights over your money in the bank.

If my term deposit matured now instead of a month ago -I think I would have kept the dosh on call or maybe even Kiwi bonds.

Im starting to toy with the idea of shifting to smaller banks like TSB or Co operative,with less overseas exposer--less assets though----any thoughts anyone?

I honestly believe Kiwi bonds for the retail investor give a far better risk adjusted return than term deposits in any bank which are ALL subject to the Reserve Bank's open bank resolution which in itself of course is a separate and additional risk to the specific risk of any bank you choose put your funds with. FWIW I think TSB are likely to be one of the safest bank's.

**Bobdn** · 17-02-2016, 11:02 AM

Trading update: I see ANZ has more bad loans but overall profit up a little. Seems OK to me I guess. What do others think?

**macduffy** · 17-02-2016, 03:34 PM

Originally Posted by Bobdn

Trading update: I see ANZ has more bad loans but overall profit up a little. Seems OK to me I guess. What do others think?

Well, the market wasn't impressed initially but I see that the SP is now up 2% in NZ and 1.2% in Aus - where it matters really. Current economic conditions have lowered market expectations so I wouldn't think there were any surprises there.

**kiwitrev** · 18-02-2016, 04:05 PM

And today SP continues to gain ground throughout the session currntly 2.5%.

Originally Posted by macduffy

Well, the market wasn't impressed initially but I see that the SP is now up 2% in NZ and 1.2% in Aus - where it matters really. Current economic conditions have lowered market expectations so I wouldn't think there were any surprises there.