HGH - Heartland Group Holdings

[Snoopy]

I dont think HGH will be having too much trouble raking in the depositor gold at the moment with comparable tiny rates offered by their competitors for smaller terms and a system awash in Govt Loot, with limited avenues for spending aside from "the so called deemed Essentials"

Their deposit rates pages are only near Rabo - and as for the other players - HGH & Rabo now offer a very generous multiple of those on offer from many or bulk of the majors & other banks.

Hate to say it - Kiwibank (aka The People's Bank) now offer what seem to be the most miserable rates, after having been severely razored down in recent days

There is more than interest rates as an incentive to put your term deposit in Heartland bank at stake here. The big four banks have just had their credit ratings downgraded in NZ.

https://www.interest.co.nz/banking/1...otch-alongside

There was a very ominous sentence right at the end of the Fitch press release.

"We will review the remaining Australian and New Zealand banks rated by Fitch in the near future."

Heartland bank is currently BBB. A downgrade to BBB- they could handle. But anything more than that Heartland is no longer an 'investment grade' deposit option. There are some entities that are only allowed to put their funds into bonds and banks with a BBB risk profile and nothing lower. IMO the deposit position at Heartland is now under threat in a way it was not a week ago.

SNOOPY

[Balance]

There was a very ominous sentence right at the end of the Fitch press release.

"We will review the remaining Australian and New Zealand banks rated by Fitch in the near future."

Heartland bank is currently BBB. A downgrade to BBB- they could handle. But anything more than that Heartland is no longer an 'investment grade' deposit option. There are some entities that are only allowed to put their funds into bonds and banks with a BBB risk profile and nothing lower. IMO the deposit position at Heartland is now under threat in a way it was not a week ago.

SNOOPY

Heartland needs to move fast and like AIA & KMD, raise capital while the market is still supportive of capital raisings at decent prices.

Don't wait for the sp to tank on a ratings downgrade and then, try and raise capital!

[winner69]

Heartland needs to move fast and like AIA & KMD, raise capital while the market is still supportive of capital raisings at decent prices.

Don't wait for the sp to tank on a ratings downgrade and then, try and raise capital!

For some likely cut in or no divies and a hand out for more cash will be painful.

But an opportunity to get even more cheap shares

[traineeinvestor]

For some likely cut in or no divies and a hand out for more cash will be painful.

But an opportunity to get even more cheap shares

I'm not sure if I would equate a lower price with "cheap" and I'd be very hesitant to put money into a company which is both highly leveraged (as are all banks) and needs to raise more capital than can be effectively procured from cancelling its dividends for the year.

While I'm too cheap to pay for the privilege of getting behind the paywall, seeing a headline like this so early in the cycle bodes ill for lenders in general: https://www.nzherald.co.nz/business/...ectid=12323544

[winner69]

Think last cap raise (not counting drips) was at $1.70

How the mighty have fallen

[Balance]

I'm not sure if I would equate a lower price with "cheap" and I'd be very hesitant to put money into a company which is both highly leveraged (as are all banks) and needs to raise more capital than can be effectively procured from cancelling its dividends for the year.

While I'm too cheap to pay for the privilege of getting behind the paywall, seeing a headline like this so early in the cycle bodes ill for lenders in general: https://www.nzherald.co.nz/business/...ectid=12323544

Times like this, a subscription to the NZ Herald, even for just one month or two, will be the cheapest investment you can make.

[clip]

I'm not sure if I would equate a lower price with "cheap" and I'd be very hesitant to put money into a company which is both highly leveraged (as are all banks) and needs to raise more capital than can be effectively procured from cancelling its dividends for the year.

While I'm too cheap to pay for the privilege of getting behind the paywall, seeing a headline like this so early in the cycle bodes ill for lenders in general: https://www.nzherald.co.nz/business/...ectid=12323544

[edit] Removed full article. ASB received the most requests for interest only/mortgage holiday, followed by westpac, kiwibank, BNZ, TSB

[Cyclical]

Times like this, a subscription to the NZ Herald, even for just one month or two, will be the cheapest investment you can make.

Yep, $1 per week for the first 4 weeks.

Edit - Clip beat me to it.

[Balance]

Yep, $1 per week for the first 4 weeks.

Edit - Clip beat me to it.

More than ever, we need to support the media - especially when they are making a real effort at investigative and pro-active reporting and journalism.

There are some decent columnists and journalists at the Herald now, I must say.

[iceman]

We should remember and respect the expressed wishes (quite some time ago) of the owners of ST that we do not post articles from behind paywalls at other media. It is illegal.