The investment smorgasbord
Tuesday 9 November 2004
Garry Sheeran looks at the alternatives to finance company debenture stocks.
By The LandlordAs everyone from the Reserve Bank governor down cries caution over the creditworthiness of some companies issuing debentures, is it time to start looking elsewhere for reliable income flows?
Such as dividends from shares, for example.
Listed companies are subject to numerous disclosure requirements. An investor can therefore know a lot more about the financial health or otherwise of a business issuing shares than about a finance company issuing debentures.
When it comes to perceived risk, the gap between shares (and the dividends they often bring) and debentures may have narrowed for now.
But the fact remains shares and, hence, dividends are inherently more volatile.
Debentures still offer a better chance investors will get back their original capital, even if there is no prospect of getting more, the hope of those who buy shares.
Read More - Opens in a new window
Commenting is closed
Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
Take note, investors: It is "quite possible" fixed rate mortgages have hit their lowest point in this cycle, according to economists at ASB.