Deposit rates news briefs

UPDATED: Bridgecorp exploring fund raising options in Oz (again), Hugely popular bonds list, Speirs changes view on its performance.

Monday, 16 April 2007

In August the Australian Securities and Investments Commission warned of "solvency issues" concerning the group as early as December 2005.

It also required Bridgecorp to repay existing noteholders as their investments matured and have its loan book reviewed by an independent expert.

"Bridgecorp Finance is exploring other fundraising instruments in the Australian market," Bridgecorp marketing manager Jo Tait told The Australian.

"We are currently only exploring opportunities. No decision has been made on what form these may take, nor timeline provided."

Another new name for rating firm
Risk Analysis, the firm using Rapid Rating’s methodology to rate finance companies has renamed itself. The firm’s new name is Axis Rating.

The Fidelity bond issue is brought to market by Westpac Institutional as Organising Participant with Westpac Institutional and First NZ Capital Securities as joint lead managers.

Fidelity chief executive Milton Jennings said part of the reason for doing the offer was to help strengthen the company’s investment credentials and show it does things other than life insurance.

Although the offer did not close until March 30 firm allocations were exceeded my February 21. At that stage the other had already been increased by $25 million to $75 million.

More losses with Speirs
Speirs Group has changed its view and said it does not expect to achieve a profit in the latest financial year.

“The group's Finance Division has grown its book during the year, and is well advanced in its announced project to markedly strengthen the quality of the book. At the same time, margin pressures experienced in the first half of the financial year have continued.

“Further bad debt has been absorbed arising from business written during the 2002-2004 period before the group adopted more conservative lending policies.

‘As realisations from recovered assets in the second half of the current financial year continued to be lower than expectations at the beginning of the year, the company is adopting an even more stringent provisioning policy.”

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