K: Financial and Insurance Services

Porges to lead P2P lender DirectMoney

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 20 : 17-Mar-15

Peer-to-peer lending group DirectMoney, which offers an average interest rate of 14.75 per cent, aims to list on the Australian sharemarket. Executive chairman Stephen Porges, who was CEO of Aussie Home Loans for five years, expects P2P lenders to put downward pressure on interest rates for personal loans in the same way that Aussie forced lenders to reduce home loan interest rates. DirectMoney was granted an Australian Financial Services Licence on 13 March 2015

CORPORATES
DIRECTMONEY PTY LTD, AUSSIE HOME LOANS LIMITED, LIBERUM CAPITAL LIMITED, EAGLEWOOD CAPITAL MANAGEMENT, SAI GLOBAL LIMITED – ASX SAI, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SOCIETYONE AUSTRALIA PTY LTD, RATESETTER, THINCATS AUSTRALIA PTY LTD, MARKETLEND PTY LTD, MONEYPLACE, LEND2FUND, CITIBANK PTY LTD, KPMG AUSTRALIA PTY LTD, ADCOCK GROUP MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, IRESS LIMITED – ASX IRE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORTGAGE CHOICE LIMITED – ASX MOC

Chi-X calls for share clearing split

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Original article by Shaun Drummond
The Australian Financial Review – Page: 16 : 16-Mar-15

Submissions on the Council of Financial Regulators review of ASX Limited’s monopoly on equities clearing must be lodged by 27 March 2015. John Fildes, the CEO of rival stock exchange operator Chi-X Australia, argues that the ASX Clear business should be subject to formal separation from ASX Limited or internal separation to ensure independent access to equities clearing. Fildes acknowledges that the domestic market is too small to justify introducing competition in the sector

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, COUNCIL OF FINANCIAL REGULATORS, LCH.CLEARNET SA, ASX CLEAR

KKR snares GE Capital arm for $8.2b

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Original article by Sarah Thompson, Sally Patten, Anthony Macdonald
The Australian Financial Review – Page: 13 : 16-Mar-15

The Australasian consumer finance division of GE Capital will be sold to KKR & Company, Deutsche Bank and Varde Partners. The consortium will pay $A8.2bn for the business, whose operations include credit cards, personal loans and sales finance. The KKR-led consortium was one of four groups that made binding bids for the business, which GE put on the market in late 2014

CORPORATES
GE CAPITAL CORPORATION, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, DEUTSCHE BANK AG, VARDE PARTNERS INCORPORATED, TPG CAPITAL LP, ONTARIO TEACHERS’ PENSION PLAN, MACQUARIE GROUP LIMITED – ASX MQG, THE BLACKSTONE GROUP LP, LIBERTY FINANCIAL PTY LTD, GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD, APOLLO GLOBAL MANAGEMENT LLC, JC FLOWERS AND COMPANY LLC, PEPPER AUSTRALIA, QATAR INVESTMENT AUTHORITY, CREDIT SUISSE AG, MORGAN STANLEY AND COMPANY INCORPORATED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CITIGROUP INCORPORATED, MOELIS AND COMPANY

Self-Managed Super popularity linked to sustained Satisfaction lead

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Mar-15

A Roy Morgan Single Source survey has found that members of self-managed superannuation funds (SMSFs) have consistently been more satisfied with their fund’s financial performance than members of other funds over the last 13 years. SMSFs scored a satisfaction rating of 77.3 per cent in the six months to January 2015, compared with 59 per cent for industry funds and 56.3 per cent for retail funds. The survey also shows that satisfaction with super increases with the balance held, although it is worth noting that SMSFs have the highest satisfaction for all balances over $A5,000

CORPORATES
ROY MORGAN RESEARCH LIMITED

IFM snares US tollroad for $10b

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Original article by Jenny Wiggins, Anthony Macdonald
The Australian Financial Review – Page: 13 & 20 : 13-Mar-15

IFM Investors CEO Brett Himbury has described the Indiana Toll Road in the US as a "fantastic investment" for the group. He is upbeat about the outlook for the US economy, and notes that the 253km toll road’s revenue is likely to remain strong regardless of the strength of the economic recovery. IFM has paid $US7.5bn ($A10bn) for a 66-year lease to operate the toll road, which was placed into bankruptcy in 2014

CORPORATES
IFM INVESTORS PTY LTD, INDIANA TOLL ROAD CONCESSION COMPANY, MACQUARIE GROUP LIMITED – ASX MQG, CINTRA CONCESIONES DE INFRAESTRUCTURAS DE TRANSPORTE SA, GRUPO FERROVIAL SA, TRANSURBAN GROUP LIMITED – ASX TCL, CANADA PENSION PLAN INVESTMENT BOARD, ONTARIO TEACHERS’ PENSION PLAN, ABERTIS INFRAESTRUCTURAS SA, BOREALIS INFRASTRUCTURE MANAGEMENT INCORPORATED, QUEENSLAND MOTORWAYS LIMITED

IPO wave may not be sustainable

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Original article by Larissa Nicholson
The Australian Financial Review – Page: 23 : 13-Mar-15

Seven companies debuted on the Australian sharemarket during the first two months of 2015. Deloitte’s Ian Turner notes that these stocks have collectively gained 23 per cent since their IPOs. The market boasted a total of 74 IPOs in 2014, which raised a combined $A26bn. Turner cautions that the IPO market may not match this performance in 2015, noting that the float market had been subdued prior to 2014

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, STANDARD AND POOR’S ASX 200 INDEX, APPEN LIMITED – ASX APX, MEDIBANK PRIVATE LIMITED – ASX MPL, HEALTHSCOPE LIMITED – ASX HSO

Lower test will add fuel to the fire for shareholder class actions

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Original article by John Emmering, Michael Legg
The Australian Financial Review – Page: 32 : 13-Mar-15

In most cases, shareholder class actions in Australia are based on alleging causation between losses incurred by shareholders and directors’ behaviour. Until now, Australian courts have required proof of individualised reliance. The Federal Court’s observations in the case against Babcock & Brown directors are likely to stimulate discussion of causality in class actions

CORPORATES
BABCOCK AND BROWN LIMITED, FEDERAL COURT OF AUSTRALIA, DOWNER EDI LIMITED – ASX DOW, ARASOR CORPORATION, UNIVERSITY OF NEW SOUTH WALES, JONES DAY

NAB leads $8b mortgage bond rush as investor demand builds

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 22 : 13-Mar-15

There has been a spike in activity in Australia’s residential mortgage-backed securities market in 2015, with issuance in the year to date topping $A8.2bn. This compares with just $A4.8bn during the same period in 2014. National Australia Bank is the latest player to venture into the securitisation market, issuing $A1.75bn worth of such securities with a triple-A rating

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF QUEENSLAND LIMITED – ASX BOQ, RESIMAC LIMITED, SUNCORP GROUP LIMITED – ASX SUN, CREDIT UNION AUSTRALIA LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED

Cabinet split on flexible super plan

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Original article by Fleur Anderson, James Eyers
The Australian Financial Review – Page: 1 & 12 : 12-Mar-15

Communications Minister Malcolm Turnbull is among the federal MPs who have criticised a proposal to allow Australian to use their superannuation savings to buy a home. Shadow treasurer Chris Bowen also opposes any push by Treasurer Joe Hockey to permit super to be used in this way, while financial system inquiry panel member Craig Dunn argues that super should be used solely to finance retirement. Hockey has suggested that super should be available throughout a person’s life due to increasing longevity

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF COMMUNICATIONS, AMP LIMITED – ASX AMP, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CENTRE FOR INTERNATIONAL FINANCE AND REGULATION, ABC RADIO, BRISBANE CLUB

Good value still out there for the willing

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 23 : 12-Mar-15

There has been strong demand for corporate bonds among yield-seeking investors in recent years. Craig MacDonald of Standard Life says long-term, lower-rated corporate bonds still offer value for investors, and he is actively seeking to invest in such assets. However, he favours cash holdings at present rather than short-term bonds. MacDonald adds that Standard Life’s corporate bond fund is likely to achieve a lower return in 2015 than in 2014

CORPORATES
STANDARD LIFE PLC, CEMEX SA