AUSTRALIAN LOAN

Wanganui Chronicle, Volume 79, Issue 15, 18 January 1936, Page 9

AUSTRALIAN LOAN

DEALINGS AT A DISCOUNT LONDON. Jan. Hilt is understood that the underwriters took up 50 per cent, of the latest Australian loan. Dealings started at 15s per eent. discount as a result of the depressed giltedged market. A possible explanation is that the bulk of the old New South Wales loan is held, and the money market found that the new long-dated stock was unsuitable to its needs, consequently the conversions are unsatisfactory. However, the underwriters state that thev are not disturbed. Contrasting this Australian conversion operation with the Siamese 4 per eent. conversion loan, cash applications for this loan closed in 25 minutes, and the issue was heavily over-subscribed. CITY COMMENT. deceived Jan. 17. 9.50 p.m. LONDON, Jan. 17. The Times’ City Editor says: “The less enthusiastic reception given the Australian loan does not reflect on the Commonwealth credit and economic position. It is merely due to the changed investment conditions. It would be unreasonable to expect the rate of interest on fixed interest stocks to continue falling indefinitely. The yield has steadily declined from the beginning of 1932 to 1935, therefore it is not surprising that investors are not interested in a security of which they could purchase the equal in Australia to yield nearly a half per cent, more, SIAMESE LOAN COMPARISON WITH AUSTRALIA LONDON, Jan. 16. The Daily Telegraph’s financial editor says the oversubscription of the Siamese loan is overshadowed by the poor results the Australian underwriters faced in a temporary period, of indigestion. The circumstances do not appear to favour an early appearance of another large trustee issue.