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Saturday, 12-Oct-2013 15:45 Email | Share | Bookmark
Nab Raises Cost Of Some Business Loans

NAB will increase the liquidity margin that applies on some of its business loans by 20 basis points, from July 30. The bank says the liquidity margin only applies to some market-linked loans that are targeted primarily at mid to large businesses which want to access funding for short periods. NAB says the vast bulk of its small business customers will not be affected by the increase, because they generally use variable rate loans. In an indication the spectre of independent rate rises by the banking sector more broadly has not gone away, NAB says the liquidity margin increase has been driven by rising funding costs. The bank says the interest rate on term deposits is at an all time high relative to the Reserve Bank's cash rate, and that its wholesale funding costs also remain high. NAB's group executive business banking Joseph Healy says the bank wants to keep customers informed about the funding pressures. "NAB is committed to being transparent about our funding costs and explaining the portion of our customers total rate that is attributed to cost of funds," he said in a statement. <br>For the original version including any supplementary images or video, visit

Distressed Debt Buyers Seek Australian Loans as Mining Struggles

In the last year, debt trading by investors such as Oaktree Capital Group LLC ( OAK:US ), Apollo Global Management LLC ( APO:US ) and Centerbridge Capital Partners LLC have precluded restructurings of companies including Nine Entertainment Group Ltd and Billabong International Ltd. Creative Sector A trust managed by Sankaty Advisors LLC agreed to buy a A$371 million portfolio of loan assets from Lloyds last month, as Britains biggest mortgage lender offloads assets it no longer considers essential. Westpac Banking Corp. and National Australia Bank Ltd. are among lenders that made preliminary bids for its Australian assets, people familiar with low doc business loans Gold Coast the matter said last month. Investors are seeking to acquire bad loans which are sitting on local banks balance sheets, according to Calder. There is a more creative sector thats moving down into mid-sized companies to acquire debt positions, he said. Some 41 percent of survey respondents expect a decline in Australias manufacturing industry over the next year. The nations retail and consumer goods companies are also expected to endure more financial distress, even after some significant restructuring in the previous four years, the survey said. <br>For the original version including any supplementary images or video, visit

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