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MR - Experts Views

Consider fixing two years now

Friday 19th of November 2010

But Alexander sasy in the BNZ Weekly Overview that he would only do that if he had a reasonable belief that fixed rates are about to rise.

"My analysis of the margins suggests we are close to a round of rate rises.

"So I find myself prepared to sacrifice the nice low 6.09% and lock in two years at 6.65% with an expectation that I will average an interest rate cost over the next two years near 0.75% lower than if I float."

He says he does not find the three year rate attractive as taking it will save only 0.4% compared with floating for the entire three years.

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
5 hours ago Steve Wright
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Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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