The risk of finding income in a low-interest-rate world
In May 2006 the last great wave of NZ finance company collapses began to surge in a swell that would ultimately carry away $3 billion plus of retail investor capital in its backwash.
A recent memory, perhaps, but 14 years is long enough for many investors to forget the details. Less than a year after one of the final GFC-era finance company legal cases closed in a guilty verdict (Viaduct Capital) last August, a new collapse splashed into headlines.
FE Investments, one of the few to survive the earlier NZ finance company rout, fell into receivership this April leaving the fate of over $54 million of retail investor deposits in doubt.
The FE failure is unlikely to trigger a second wave of finance company collapses for the simple fact that only a handful continue to operate in NZ. However, the investment promise that FE and finance companies of old thrived on remains alive and well in NZ.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
