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Discussion in 'General Investing Discussion' started by Tropo, 9th Apr, 2008.

  1. Tropo

    Tropo Well-Known Member

    17th Aug, 2005
    Stock lending data disarray

    The Deputy Chair of the Australian Shareholders Association may have identified a $84 billion hole in official stock lending data. A recent BNP Paribas report suggested the total stock lending (margin lending, short selling, CFD's, etc) was between $95 and $185 billion, however the ASA could only account for approximately $56 billion. Stephen Matthews the Deputy Chair of the ASA believes this lack of data could lead to further market disruption as there is no knowledge of either this lending or the "extent of short selling and margin calls have been massively understated". Matthews also is going to argue in a speech in Sydney on Wednesday there is no "keeper" of comprehensive statistics as there is no government department with a mandate to do same.

    Source: Sydney Morning Herald

    Downturned demand for residential lending

    The Sheet this morning reports that tighter access to funding has dampened demand for residential lending. Australian Finance Group's (AFG) sales are down 13 per cent from December 2007 and 24 per cent since September 2007. AFG accounts for 10 per cent of all residential lending so their results are startling. Mark Hewitt, general manager of sales and operations at AFG, said, "If we are down the amount we are, how much are others down?" While the AFG results are a start, the Australian Bureau of Statistics data will be required to corroborate whether there has been a serious downturn in the market, however this data will not be available for another two months.

    Source: The Sheet

    ANZ in $1 billion worth of bad debt

    Sharemarket volatility combined with the collapse of Opes Prime has left ANZ with the possibility of $1 billion in bad debts. ANZ shares fell 6.6% over the course of Monday as the company increased its provisioning for bad debt by $350 million. ANZ argued that the extra provisioning was "pre-emptive" and simply reflective of the falling credit rating of some of the companies to which they either lend or have taken security in. ANZ also revealed that it had engaged takes of more than 5% in over 90 companies when the receivers were appointed to Opes Prime.

    Source: The Age

    DIY super be warned

    Superannuation Minister Nick Sherry is performing a review on the Self Managed Superannuation Funds sector. New questions are already being introduced for returns beginning in July this year. Signals have been getting stronger for some time that the government is getting tough on regulation with many believing that this is the first stage of many which will force the sector to tighten up. There are many areas that the government will be looking at, these include whether each fund has an investment strategy. The government is concerned that a lack of regulation and supervision will lead to substandard retirement outcomes for many Australians.

    Source: The Australian Financial Review