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  1. #11801
    percy
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    The cure is continuing solid earnings.Always has been.

  2. #11802
    Legend Balance's Avatar
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    Quote Originally Posted by percy View Post
    The cure is continuing solid earnings.Always has been.
    Anyone done an assessment of HGH's fast growing reverse mortgage business in Oz as the property market there is predicted to continue to decline (and maybe crash)?

  3. #11803
    Speedy Az winner69's Avatar
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    Quote Originally Posted by Balance View Post
    Anyone done an assessment of HGH's fast growing reverse mortgage business in Oz as the property market there is predicted to continue to decline (and maybe crash)?
    No worries with RELs mate

    Company spokesman person Percy would refer to you pages 35 to 39 being the section on Stress testing RELs in this presentation
    http://nzx-prod-s7fsd7f98s.s3-websit...018/290747.pdf

    Last page below

    Part of that presentation is very much like one’s CBL Insurance produced ....designed to make sophisticated complex things clear as mud
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    Last edited by winner69; 06-01-2019 at 08:36 AM.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  4. #11804
    percy
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    Quote Originally Posted by winner69 View Post
    No worries with RELs mate

    Company spokesman person Percy would refer to you pages 35 to 39 being the section on Stress testing RELs in this presentation
    http://nzx-prod-s7fsd7f98s.s3-websit...018/290747.pdf

    Last page below

    Part of that presentation is very much like one’s CBL Insurance produced ....designed to make sophisticated complex things clear as mud
    No "sophisticated complex things" at HGH.
    Any comparison to CBL is misleading,and mischievous.
    Should any one bother to check,I did warn, as was pointed out by BlackPeter's post; #125 page 9 on CBL Insurance IPO thread 8/4/2017,of huge disasterous underwriting losses breaking insurance companies,because I had read the history of Lloyds.
    HGH is a simple business model,run by directors and managers who tell shareholders what they intend to do,then they do it.
    Last edited by percy; 06-01-2019 at 09:00 AM.

  5. #11805
    Legend Balance's Avatar
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    Quote Originally Posted by winner69 View Post
    No worries with RELs mate

    Company spokesman person Percy would refer to you pages 35 to 39 being the section on Stress testing RELs in this presentation
    http://nzx-prod-s7fsd7f98s.s3-websit...018/290747.pdf

    Last page below

    Part of that presentation is very much like one’s CBL Insurance produced ....designed to make sophisticated complex things clear as mud
    Too complicated for me. All one needs to know (really) from HGH is :

    Given the actuarial spread of RELs portfolio, what would be the impact on HGH's profitability and financial position of another 10%, 20% and 35% fall in Oz property prices.

    https://www.theguardian.com/australi...australia-down

  6. #11806
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    Percy i respect your views and opinions, i am a new shareholder thankfully having entered the registry in the past few weeks. As someone who works in banking its clear to all HGH are taking higher risks to obtain the NIM they achieve which is all well and good but it doesn't sit well that they then try and compare their NIM to dare i say it real banks (those that provide full banking services (corporate, property finance, institutional etc). To try and say HGH are conservative by lending xxx LVR is a red herring one only has to look at how quickly valuations which are relied on in lending decisions are proven to be wrong and guesstimates at one point in time. Lets hope HGH earnings can be sustained through a downward cycle with particular emphasis on keeping impairments manageable.
    Time is a great teacher, but unfortunately it kills all its pupils

  7. #11807
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by winner69 View Post
    Company spokesman person Percy would refer to you...
    ... of that presentation is very much like one’s CBL Insurance produced ....designed to make sophisticated complex things clear as mud
    Is that a paid role or voluntary (got to be a part time paid role for TRA surely) lol

    Quote Originally Posted by boysy View Post
    ...but it doesn't sit well that they then try and compare their NIM to dare i say it real banks...
    This is going to be more fun than the 5th November Its the tens of millions loaned unsecured through Harmoney to hapless / reckless consumers who can't even be bothered saving up for their overseas holiday that worries me. Too easy to do a voluntary short form no asset procedure and wipe the slate clean these days.
    Last edited by Beagle; 06-01-2019 at 11:11 AM.
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  8. #11808
    percy
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    Quote Originally Posted by boysy View Post
    Percy i respect your views and opinions, i am a new shareholder thankfully having entered the registry in the past few weeks. As someone who works in banking its clear to all HGH are taking higher risks to obtain the NIM they achieve which is all well and good but it doesn't sit well that they then try and compare their NIM to dare i say it real banks (those that provide full banking services (corporate, property finance, institutional etc). To try and say HGH are conservative by lending xxx LVR is a red herring one only has to look at how quickly valuations which are relied on in lending decisions are proven to be wrong and guesstimates at one point in time. Lets hope HGH earnings can be sustained through a downward cycle with particular emphasis on keeping impairments manageable.
    Property lending based on % of LVR is not a red hearing with HGH.
    Your 'real' banks lend up to 75% to 90% of LVR on initial lending,for terms up to 30 years,at a lot lower magin than HGH achieve with REL lending.
    HGH lend intial 11% to 12% of LVR.Average term of loan is not 30 years but between 6.6 years and 7.5 years.
    The average LVR at repayment is between 27% and 33%.
    Any deterioration in property values will be felt by your 'real' banks.
    Yes the 105 [or is she 106?] year old in Geelong, is having the last laugh at HGH's expense,but I think shareholders and management still wish her well.!..lol.
    Last edited by percy; 06-01-2019 at 11:20 AM.

  9. #11809
    Dilettante
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    Quote Originally Posted by percy View Post
    Property lending based on % of LVR is not a red hearing with HGH.
    Your 'real' banks lend up to 75% to 90% of LVR on initial lending,for terms up to 30 years,at a lot lower magin than HGH achieve with REL lending.
    HGH lend intial 11% to 12% of LVR.Average term of loan is not 30 years but between 6.6 years and 7.5 years.
    The average LVR at repayment is between 27% and 33%.
    Any deterioration in property values will be felt by your 'real' banks.
    Yes the 105 [or is she 106?] year old in Geelong, is having the last laugh at HGH's expense,but I think shareholders and management still wish her well.!..lol.
    Well said. HGH certainly does some lending that could be regarded as higher risk, such as Harmoney, car finance and business finance. But HGH's residential property portfolio most certainly is not high risk with the very low LVR REL's being as safe as any property lending by any bank, as you clearly lay out in your post. The "real" banks are MUCH more exposed to decline or crashes in property valuations.

  10. #11810
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    The difference being those high lvr loans are P&I with people who have jobs. If they fail to pay the mortgage you can move in sell up so even if the LVR is 80% the bank can still walk away without loss.

    Quite different than interest capitalising loans where you cannot realise anything until the oldies Kark it.To call these loans lower risk is simply ignoring the different risk each type of borrower poses.

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