News Round Up

Tuesday, November 11th 2003, 11:10PM

One CDO on, one off
Forsyth Barr is understood to be launching a new CDO offering later this month, while Macquarie have canned one it planned.

Forsyth Barr's offer will seek $100 million from retail and institutional investors through an issue of investment grade fixed-interest notes, due to open on November 17.

One series of the Global Credit Notes is expected to be rated AAA by Standard & Poor's and offer a return of 7.2%. The other is expected to be rated A and offer 8.25%.

Meanwhile, Macquarie has pulled its planned issue of Generator 2 Bonds. One of the main reasons for this decision is unfavourabele movements in the fixed interest markets.

Strategic buys AMP book
Strategic Finance, has acquired the remaining commercial loan portfolio of AMP's New Zealand banking operation.

Strategic chief executive and director, Jock Hobbs, the loan portfolio being acquired is $46 million.

Hobbs says the acquisition increases Strategic's total assets to more than $280 million, compared to $234 million as at June 30, 2003. The acquisition takes the company¹s total loans portfolio to over $225 million, up from the $180 million reported at balance date.

"The decision to acquire the AMP loans was made because it further diversifies the company¹s lending portfolio by increasing exposure to the commercial and industrial property sectors," Hobbs says.

The acquisition will increase the level of first mortgage lending, will double the size of Strategic¹s client base, and will result in a lower average loan size post acquisition.

Commision pings Ace
Finance and mortgage broker Graeme Charles Fisher was fined $9,000 in the Blenheim District Court last week, after pleading guilty to breaching the Fair Trading Act in relation to misleading claims made in radio advertising about his business, Ace Financial Services.

The Commerce Commission laid charges against Fisher in regards to advertising on Sounds FM between April 2001 and February 2002 in which representations were made that ‘they’ve got better rates than you know who’ and that ‘they’ll shop around to make sure you’ll get the best deal’.

Director of Fair Trading Deborah Battell said that during that time, Fisher did not shop around to get the best deal, but put almost all loans through one finance company, Blenheim Finance Limited of which he was director and 50% shareholder.

"In addition, Fisher’s loans were not the best deal. In a random sample of 30 loans, in each case his were more expensive than those of both his main competitor and those that would have been available through other financiers at the time," Battell said.

Battell said that the Commission had taken action against Mr Fisher because in the Commission’s view his claims were false and unfair to consumers and competitors.

"It is important for consumers to be able to trust claims made by businesses, especially claims they cannot test for themselves. The actions of lenders like Fisher also undermine public confidence in the business of legitimate brokers."

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