NEW ZEALAND LOAN SUCCESS
LONDON, May 12. "Time and Tide" this week comments: "Now that New Zealand has succeeded in its bold attempt to create a fresh rocord in borrowing rates, investors are wondering What to expect next. For an overseas Dominion to be able to borrow £5,000,000 at 5 per cont., offer its stock at par, and also redeem it at par, is no mean achievement. It is true that the ikew Zealand Government has the option to redeem the issue on or after July ft, 1935, and if money rates fall (and there aro indi-. cations that they may) stockholders must not bo surprised if the Dominion exercises the option. Of course, it may be that .much of the secret of tho success of such' an issuo at so low a rate of intorest ij on account of the fact that it is a sbum! trustee invest-
ment. It is now very difficult to obtain good trustee securities at a price on a par with pr below thp redeemable price. Fpr trustees are personally liable fpr the £5 say, in purchasing £IOO pf 5 per cent, stock at £lO5, which is redeemable at £IOO, unless they l.akfl pains to; provide a stinking fund out of tho aknunl interest income. And this Ban irksome job which few trustees imre to face."— Christchurch Press, i i
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Poverty Bay Herald, Volume XLVIII, Issue 15871, 10 July 1922, Page 7
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226NEW ZEALAND LOAN SUCCESS Poverty Bay Herald, Volume XLVIII, Issue 15871, 10 July 1922, Page 7
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