Finance company collapses tipped

Thursday 24 June 2004

Dark clouds are gathering over the $10 billion finance company sector and one or two collapses are expected, a report out today warns.

By The Landlord

The 94-page analysis of the sector by independent broking firm McDouall Stuart says one or more failures are to be expected, as the mushrooming sector adjusts to new economic conditions.

"A growing market has seen the formation of countless finance companies. Many are small, over-geared or over-exposed to a sector and a tightening market may see one or more collapse."

The finance company sector is about to come under increased scrutiny by regulators, with the Securities Commission launching a review of disclosure.

McDouall Stuart claims some finance companies pose a significant risk to investors, a risk for which they are being "woefully compensated."

Read More - Opens in a new window
Commenting is closed

Property News

Price expectations spiral down

Housing confidence has been dealt a hefty blow by the Covid-19 crisis with house price expectations plummeting to new lows.


Industrial holdings leave Provincia in strong position

Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.


Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer