Rates round-up
First payment this week for Orange investors; Allied Nationwide looks for long-term deposits, F&P Finance cuts back rates; Fortress Notes gather momentum
Monday, August 10th 2009, 9:25AM
First payment this week for Orange investors
Orange Finance investors voted in favour of accepting a moratorium plan where they will receive a payment of 15 cents in the dollar this week, even as the company could not say when the next payment would be.
The plan will keep Orange from going to the receivers, but it is unclear whether investors will benefit from it.
No interest will be paid to debenture investors until the principal has been repaid, something that the company does not expect to occur unless market conditions improve significantly.
Debenture stock investors are owed some $23 million by the finance company.
Allied Nationwide looks for long-term deposits, F&P Finance cuts back rates
Allied Nationwide has upped its rates for long-term deposits, boosting its six-month rate 50 basis points, its one-year 150 points, 18-month 200 points, two-year 175 points, and three, four and five-year rates 150 points each.
Meanwhile F&P Finance has cut back on its offerings, slashing two to five-year terms 100 points, 12 and 18-month terms 50 basis points, and three, six and nine-month deposits 25 basis points.
National Bank boosted six-month rates 110 points while cutting 100 points its five-month rates, while ANZ upped six-month terms 10 basis points.
Savings & Loans introduced six-month deposits at 5% and 18-months at 6.5%, while cutting its three-year offering. The company boosted its 12-month terms 250 basis points and two-year rate 300 points.
Fortress Notes gather momentum
Macquarie New Zealand Fortress Notes continue to gather momentum, with their net asset value climbing to approximately 19.5 cents per note. Whether this is easing the outlook for the security is unclear, with outstanding loans still weighing on the prospect of investors receiving any interest repayments.
At April 30, the portfolio had nine defaulted obligators totalling US$31 million. Two had been sold at a loss of US$10.7 million, and a further position that hadn't defaulted was sold at a loss of US$3.1 million.
The company said no interest repayments would be made until financing was fully repaid, and this wasn't expected until 2012.
| « RB mum on who it has given exemptions too | Banks up stakes in the term deposit battle » |
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