tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, February 25th, 7:02PM

News

rss
Latest Headlines

Confidence could be hit by collapse

Ratings agency Standard & Poor's says the receivership of finance company Bridgecorp has the potential to affect market confidence.

Thursday, July 5th 2007, 6:37AM
Specialist property financier Bridgecorp was placed in receivership on Monday after defaulting on repayments of some term investments due to investors.

In total about 18,000 investors and $500 million in investments are caught up in the receivership.

S&P today said the Bridgecorp default unambiguously highlighted the need for the strengthened regulations in the New Zealand Non-Bank Deposit-Taking (NBDT) sector announced last month by the Government.

For now NBDTs can choose whether to get a credit rating, but a new law due to be introduced to Parliament before the end of the year will make it mandatory.

S&P said the Bridgecorp default could have potential effects on market confidence and spill-over effects on this country's "extraordinarily large" number of retail debenture-issuing finance companies.

It would be monitoring the rates at which finance company debentures were renewed, which was likely to be one of the best barometers of retail investor confidence.

The greatest sensitivity affecting the NBDT industry in the short term was the potential effect of the Bridgecorp default on the funding bases of retail debenture-issuing finance companies, S&P said.

S&P corporate and government ratings director Gavin Gunning said the failure of Bridgecorp during favourable macroeconomic times highlighted the need for the NBDT sector to get its house in order before the next economic and property cycle.

Coupled with the failures of three other finance companies during the past year or so, it was a red flag signalling that reforms were needed within the industry as a matter of priority if more investors were not to lose out when the economic cycle turned.

A major challenge for investors was differentiating between stronger and weaker NBDTs, an area where S&P believed it could provide credible, independent credit ratings. "Based on public information we believe that there are some sound companies in the New Zealand NBDT sector in which investors can have confidence," Gunning said.

« Finance coys cross fingers on falloutSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 2.89 3.25 3.39
ANZ Special - 2.29 2.69 2.79
ASB Bank 4.45 2.29 2.59 2.65
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.29 2.59 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 2.89 3.19 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - 1.99 - -
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 2.79 3.04 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.20 3.50 3.50
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 2.65 2.65
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 2.79 2.79 3.15
SBS Bank Special - 2.29 2.29 2.65
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.09 - -
The Co-operative Bank - Owner Occ 4.40 2.29 2.59 2.79
The Co-operative Bank - Standard 4.40 2.79 3.09 3.29
TSB Bank 5.34 3.09 3.29 3.45
TSB Special 4.54 2.29 2.49 2.65
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 2.29 2.69 2.79
Median 4.54 2.79 2.99 2.96

Last updated: 15 February 2021 8:47am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com