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Susan Edmunds
Susan Edmunds
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Lack of corporate bonds causing concern

Friday 10th of April 2015

Christian Hawkesby, of Harbour Asset Management, said many financial advisers he had spoken to were concerned about the number of corporate bonds maturing, comparing to the low number of retail issuances.

“Advisers are right to be concerned,” he said. “It is true that there have been fewer good quality retail bond issues and it is true a steady pipeline of bond maturities is approaching.”

Advisers would have to decide what to do with the money coming in, he said.  Only 30% of corporate bond insurance since January 2104 had been available to retail investors.

Hawkesby said the change in the composition of corporate bond issuance away from retail was influenced by the growth of KiwiSaver, providing a ready pool of cash to create wholesale demand, and issuers finding it easier to issue directly into the wholesale market where they did not need retail documents.

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Latest Comments
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.
3 days ago Steve Wright
FMA outlines its latest expectations for advisers
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.
3 days ago Backstage
FMA outlines its latest expectations for advisers
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5 days ago Jon-Paul Hale
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5 days ago Jon-Paul Hale
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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".
5 days ago Paul Flood