Rates updates and more

Latest rate movements, News for Bridgecorp investors this week, Geneva increases profit slightly, General Finance offers monthly option, Generator bonds on positive watch.

Monday, 23 July 2007

In the past week there have been a couple of changes, the most significant being Raboplus which has again hiked some of its rates.

The key on-call rate has risen from 7.75% to 7.85%. Meanwhile its one-year term deposit is up 10 points to 8.55% and the five-year rate up five points to 8.05%.

The other bank to tweak rates is HSBC.

While none of the other banks moved one would expect that rates will again increase if the Reserve Bank ups its official cash rate 25 basis points on Thursday.

Amongst the finance companies, one of the big players, UDC made several changes.

Rates have been increased by 5 points on the one to five month terms and also the one-year interest at maturity.

Longer-term rates have been adjusted downward by 10 points. "These changes reflect some minor wholesale changes in our funding over the short term and are in anticipation of an increase in the OCR," UDC says.

The other significant mover was Instant Finance. It has moved most of its rates, with three months sitting at 8.75%, six and nine months at 9.00%. The one year rate is 50 points higher and it is another 50 points up to the two and three year rates which are now 10.00%.

News for Bridgecorp investors this week
Bridgecorp's 18,000 investors are likely to get a better idea this week about how much of their money they will get back and when.

The receivers have indicated to depositrates.co.nz that an announcement will be made soon.

There has been plenty of speculation about what level of recovery the receivers will achieve.

Geneva increases profit slightly
Geneva Finance has announced its tax-paid profit has risen six percent to $4.02 million for the year ending March 31. During the period revenue grew from $37.0 to $48.6 million and total asset sit at $171 million.

"It's been a good year for Geneva, despite market conditions," managing director Glenn Walker says. "This is a very solid performance during a time of significant industry and regulatory challenges, and it also reflects the completion of our business establishment phase."

During the financial year Geneva continued to further develop its loan origination and management capability, as part of its continuing Standard and Poor's credit rating process and banking compliance programmes.

General Finance offers monthly option
General Finance is releasing a monthly interest option for investors who require more regular income.

The company uses investors' funds to provide bridging finance and second mortgage finance.

"If you are, say a property investor that has some spare funds available due to the sale of investments and would like to deposit your funds with a company that only lends these funds in residential property market, then we are the company for you."

Its flagship rate is 10.15% for two years with interest paid quarterly in arrears.

Generator bonds on positive watch
Standard & Poor's Ratings Services has placed its rating on the Generator NZ No.1 Trust (Generator NZ) repackaged notes on CreditWatch with positive implications.

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