What happened Friday

A review of the things you need to know before you go home on Friday; It's still raining bonds, but not the real stuff; BNZ changes mortgage 'specials'; Aorangi investors may get it all back

21st Feb 14, 4:00pm by David Chaston

For Friday, February 21, 2014. <a href="http://www.shutterstock.com/">Image sourced from Shutterstock.com</a>

Here are the key things you need to know before you leave work today.

WE NEED RAIN
Not only is the land dry, but the hydro lakes now need rain. Inflows are currently running at half normal flows for this time of year and storage has slipped below normal for the first time this year. No crisis but worth watching. The wholesale electricity price jumped higher recently, presumably as a reaction to the developing trends.

CROWN ACCOUNTS
The main reporting of the half year Crown accounts was how they are behind on a six month basis compared with where they were forecast to be in the HYEFU. But the result for the month of December actually clawed some of that back, both on a OBEGAL and total surplus basis.

HUBBARD INVESTORS MAY COME OUT SQUARE
The liquidators of Allan Hubbard-owned Aorangi Securities say they have paid out 92c so far with more to come. This result is only possible because of an arrangement with Jean Hubbard, they say. They will still be short their interest however.

RAINING BONDS II
ANZ has now joined a flurry of corporate bond issues this week, on the heels of a bond "tap" from Westpac last week, looking to raise at least $200 million through a five-year issue. Auckland Council also announced plans for a 10-year retail bond issue yesterday, and details of a $45 million Christchurch City Council issue were revealed. These follow announcements of impending issues from Sky TV and Contact Energy. Fonterra is also rumoured to be mulling an issue. Auckland International Airport has also been mentioned as about to come to market.

BNZ CHANGES MORTGAGE RATES
This big bank ended its 5.39% one year fixed 'special' reverting to its 5.49% rate for this term. They then added a new 'Classic' special for two year fixed at 5.95% matching all their main rivals.

WHOLESALE RATES
Swap rates were up 3 bps again today across all terms following the rise in international markets last night. The 90 day bank bill rates are down today however, now at 2.94%.

OUR CURRENCY RISES
The NZD is ending the week in a mid range of todays trading against the USD. The TWI is now 78.0 up just slightly on the day.

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4 Comments

by scarfie | 23rd Feb 14, 8:59pm 1393142369

Lessons to be learnt Hugh, it is all about energy. http://www.zerohedge.com/news/2014-02-20/ukraine-situation-explained-on…

by dh | 22nd Feb 14, 9:15pm 1393056938

A good readable longread general article for the weekend on managed vs indexed funds (originally from 2006 but still a good read)

http://www.ritholtz.com/blog/2014/02/the-best-investment-advice-youll-n…

by steven | 23rd Feb 14, 10:02pm 1393146120

Gloating already? bit early. Funny really, the Internet allows all sorts of utter rubbish to get airtime, more fool ppl for choosing badly.

Its not really very likely that that 5 points has gone from the Green's all the way over to National, more likely its a blip and we'll see a correct. BTW I follow Cunliffe on Facebook, whet an eye opener, dunno hich party is worse, certainly I'd never vote labour....pork barrel politics to the fore.

The science of climate change is settled enough that action should be taken, it wont be of course, so we will reap what we deserve.

regards

by steven | 24th Feb 14, 7:09am 1393178956

You know some things come through clearly. You and PhilB have a great deal in common including a Libertarian world view that in the ballot box is shown as un-wanted.

Next you will be promoting whaleoil as the "media" of the future, he isnt, not much truthful or factual there, entertaining at times yes. The Internet will indeed and has given us transparancy, but you'll find like others, you cant pick and choose.

You are right on the establishment perishing (or declining at least), of course it will, it needs too much energy. Not sure if that is good or bad yet.

Green's no no need or reform, not as Im sure you mean anyway. Really one dip and you are as happy as anything, yet underneath I think the fear is showing....pray harder.

regards