China new loans rise less than expected; Juwai issues 'last chance' promotion; RBA laments lack of bank support for SME lending; UST 10yr yield at 2.40%; oil and gold unchanged; bitcoin bounces; NZ$1 = 69.3 US¢, TWI-5 = 72.5

Banks have always been punitive towards small business owners. some years ago when i looked at buying a business it was the finance cost that made it unprofitable. Everything else was great. the bank essentially demanded that I sell my soul for their support. I talked to a friend however who had set his business up without finance, building it slowly as a self employed, hiring staff as his customer base grew. Now with 20 staff, he says he regularly gets visits from the bank who want to lend him money! He just politely invites them to ensure they don't get hit in the butt by the door as they leave while he asserts considerable self control.

I suggested to him that he could offer to sell them 49% of the business (at an exceedingly fair price of course!) but he just laughed and said they keep turning him down on that offer!

Chinese marketing NZ property before restrictions come in - Jacinda should make owning property against the law for foreigners. Make it that all foreigners have five years to either divest themselves of the property, or gain residency and become residents here at least. That way we'll know for certain just how much property is affected. Having residency, but not living here should not be an option - smacks too much like bribery!

And our new PM is hell-bent on annoying the Australians .

WTF is she trying to prove ?

Its not helped by Labour's meddling before the election and causing the Barnaby Joyce fiasco, which nearly brought down Turnbull's government .

You would have thought that Ardern wold have backed off interefering in Australia's affairs having caused enough damage already .

Now she is kicking the hornets nest over the refugees on Manus Island ( many of whom are suspected criminals and are known to be militant ) and are wanted back in their home countries

So if we accept them , we will need to house them , in the middle of a housing crisis, and feed them , and when some commit offences we will need to incarcerate them at a cost of $100,000 per annum using taxpayers money . And there is a militant undertone among those who are on that island . These are not your 'huddled masses' , but opportunists , who have paid good money to try their luck as ' refugees"

Australia has very good reason for not accepting our offer.

Firstly , these refugees will become NZ citizens , and then by default will get automatic access to Australia .

Secondly , quite .simply , Aussies have just got on top of the people smuggler boats from Indonesia trying their luck , and now if the people smugglers know they can get into New Zealand in a convoluted round trip, they will start all over again . People smuggilng around the world is a massive criminal enterprise and we have it almost everywhere from Central Europe ( France ) to South America to the Middle east , North and South Africa , Indonesia , Malaysia , the Horn of Africa ..

And then , what about our very own homeless New Zealanders ?

Labour garnered a significant number of votes over the issue of our very own homelessness . As far as I know they have done nothing since the election to resolve the issue . Is there even a plan or a strategy ?

I know this is a play on the correct use of the idiomatic expression , but charity does really need to start at home .

Good on for Jacinda for giving the Aussies a poke..unlike the previous Government she is not afraid to push back.As for solving the homelessness in a month, come on Boatman the last government had 9 years at least you could try to be less impatient. Perhaps you could take some in your mansion in Greenhith?

In New York, the UST 10yr yield is unchanged today at 2.40%. But their 2-10 spread is now its flattest in ten years.

A well defined liquidity preference due to a lack of bank capital commitment where potential opportunity could exist but the perceived risk/reward calculations say otherwise.

Though spared the worst, investors came close to creating a scenario where ETF activity drove prices. Calling it the “ETF spiral,” Peter Tchir of Academy Securities Inc. describes a snowball effect where a dislocation develops between the fund price and the value of its underlying assets.

The issue’s endemic to liquid ETFs that trade without dipping into the underlying market. In that case, the selling doesn’t affect the actual securities it holds right away, so for a time the fund is priced differently than the cumulative value of its assets, known as its NAV.

Here’s where an arbitrager can step in, selling the individual debt securities and buying the newly discounted ETF, all the while profiting off the price discrepancy. The arb provides a service to the market, narrowing the gap between the price of the ETF and the underlying bonds with each trade.

But according to Tchir, the process isn’t always so smooth. When fixed-income traders become concerned about illiquidity in a falling market they’ll perpetuate the selloff by driving down bond prices even faster than the ETF, or short the ETF as a hedge, he said.

“It is this additional nervousness (which is largely rational) that feeds the potential spiral effect rather than closing the discount as one might expect,” Tchir wrote in a note on Nov. 10. “Discounts to NAV in high-yield and leveraged loan ETFs open the market up to more selling pressure rather than less.” Read more