evolving issues, page-2

not sure why you are posting this stuff now..
Bottom line is that RHG is undervalued/fairly valued or over valued depending on what the residual loanbook is worth. Pre c/c valuations are north of the 1.00 mark; obviously at present 53bp above bbsw is the rate at which rams has been able to refinance - rams needs to inform the mkt how profitable its existing book (on avg) would be at that rate. Most in the industry believe rams b/e point on the loan book is in the vicinity of 70bp. Additionally rams can also profit via the break fee - if it hikes its mortgage rates dramatically this may allow it to collect the 2% fee and also not have to refinance this part of the running down book.

I would agree that it seems increasingly unlikely that rams will get a superior offer for its franchise.