Can any one explain to me (in simple English) why a mega-bank like the ANZ has gone the the local market to raise almost $1 billion dollars in new deposits in little over a one month period?
I would have thought that banks would be awash with cash from people too scared to leave their savings in higher risk finance companies or the like.
Also remember that the Reserve Bank has just recently relaxed the rules for trading banks to borrow extra cash from that source as well.
I can remember the mid 80' s when it was possible to get 300% p.a. and more for over-night money as NZ suffered a credit crisis at the time caused by high interest rates, massive inflation and a falling dollar.
Is there something nasty out there that we don't yet know about?
You tell me.
ANZ National seeking $100m
By GARETH VAUGHAN - Fairfax Media | Friday, 23 May 2008
ANZ National Bank, the country's biggest bank, wants to raise a minimum of $100 million in a public debt issue just a month after raising $835 million in an earlier bond issue.
ANZ said today the new offer was for up to $100 million worth of bonds, but with an option to accept unlimited over subscriptions at the bank's discretion. The bonds will offer investors' two year or six year maturity terms.
The bonds will be allocated following applications from institutional investors and brokers. They are expected to be issued on June 9 and be listed on the NZX debt market.
ANZ said it would use the money raised to meet its on going funding requirements.
Just last month ANZ raised $835 million in a perpetual bond offering, which included $435 million in over subscriptions. Those bonds will pay interest of 9.66 per cent per annum.
The ANZ offers join a flood of bond issues from the trading banks who have found borrowing money internationally tougher due to the international credit crunch. They're also benefiting from investor nervousness after a spate of finance company collapses.
ANZ said its latest debt issue carried an AA credit rating from Standard & Poor's, Aa2 from Moody's Investors Service and AA- from Fitch Ratings.
I would have thought that banks would be awash with cash from people too scared to leave their savings in higher risk finance companies or the like.
Also remember that the Reserve Bank has just recently relaxed the rules for trading banks to borrow extra cash from that source as well.
I can remember the mid 80' s when it was possible to get 300% p.a. and more for over-night money as NZ suffered a credit crisis at the time caused by high interest rates, massive inflation and a falling dollar.
Is there something nasty out there that we don't yet know about?
You tell me.
ANZ National seeking $100m
By GARETH VAUGHAN - Fairfax Media | Friday, 23 May 2008
ANZ National Bank, the country's biggest bank, wants to raise a minimum of $100 million in a public debt issue just a month after raising $835 million in an earlier bond issue.
ANZ said today the new offer was for up to $100 million worth of bonds, but with an option to accept unlimited over subscriptions at the bank's discretion. The bonds will offer investors' two year or six year maturity terms.
The bonds will be allocated following applications from institutional investors and brokers. They are expected to be issued on June 9 and be listed on the NZX debt market.
ANZ said it would use the money raised to meet its on going funding requirements.
Just last month ANZ raised $835 million in a perpetual bond offering, which included $435 million in over subscriptions. Those bonds will pay interest of 9.66 per cent per annum.
The ANZ offers join a flood of bond issues from the trading banks who have found borrowing money internationally tougher due to the international credit crunch. They're also benefiting from investor nervousness after a spate of finance company collapses.
ANZ said its latest debt issue carried an AA credit rating from Standard & Poor's, Aa2 from Moody's Investors Service and AA- from Fitch Ratings.
Comment