Rates Round Up
More Momi trouble for Bridgecorp; Rockforte Finance in fashion spotlight; Equitable has new offer: Rates Update - who has hiked rates.
Sunday, August 16th 2009, 9:41PM
by Paul McBeth
More Momi troubles for Bridgecorp investors
The auction of the unfinished Momi Bay development that had some $106 million invested in it by the failed finance company Bridgecorp is under threat by the developer which is seeking to block the sale.
Matapo, which is itself subject to a $17 million suit from Napier's Herbert Construction company for work on the site in Fiji, hopes to stop Bayleys' auction on behalf of the Fiji National Provident Fund.
The action has the support of Bridgecorp's receivers, and if the sale is allowed to go ahead, 14,300 Bridgecorp investors will probably be looking at a return of 10 cents for every dollar they invested in the company.
Rockforte Finance in the spotlight over Jean Jones' funding
Rockforte Finance, the small finance company with a loan book of some $6.8 million, is facing scrutiny on several fronts after the liquidator of Jean Jones raise some concerns about its financing of the clothes retailer.
Trustee Covenant Trust said there are concerns around the finance company and it is waiting on the auditors for confirmation of an investigation after Jean Jones' liquidator Montgomerie and Associates raised the matter. The liquidator has also passed on what it has found regarding Rockforte's fund-flow to the Companies Office.
Equitable Mortgages makes new debenture offer, cancels Australian Dollar Bond
Equitable Mortgages has put out two new debenture offers at 6.50% for a 12-month term and 8% on 24-month terms to be invested in its Property Mortgage Fund. The offers are for a limited time and will close at Equitable's discretion.
For more details on the offer click here
Meantime, the finance company has pulled the plug on new Australian Dollar Bond offerings, and while this does not impact on current holdings, investors will be given the opportunity to withdraw their holdings or shift to another investment upon maturity.
PSIS goes long on deposit rates, ASB, UDC, ABN AMRO play out the 5-month space
PSIS has decided to go long in the deposit rate war, boosting its 12-month rate 50 basis points, its two- and three-year rates 10 points and its four-year rate 25 points.
Meanwhile, the five-month space got tighter with ASB boosting rates on deposits of $5,000 or more 160 points and $10,000 deposits 110 points, while ANZ-owned UDC boosted its offering by 20 basis points and ABN AMRO lifted rates 85 points, 50 points and 15 points for deposits for $20,000, $50,000 and $100,000 respectively.
ABN AMRO also boosted its three-month terms 75 basis points, 70 points and 60 points for the $20,000, $50,000 and $100,000 deposits, and raised its six-month offerings 90 points, 60 points, and 35 points respectively.
Meanwhile, UDC cut its one- and two-month rates 10 basis points for deposits over $100,000 and lowered its three-month rates 15 points and 25 points for deposits under and over $100,000 respectively.
Paul is a staff writer for Good Returns based in Wellington.
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