Ann: Change in substantial holding - Clayton Howes, page-26

I feel like higher rates means:

1. We can pass it onto customers in most cases, except in cases where they'll be unable to afford the higher repayments. So high interest rates having some negative impact there.
2. The cost of the corporate debt facility rises, and we can't avoid that (can't pass it on). So even if operating profit stays flat due to #1, it's still far more costly to retain the corporate debt. So fairly strong negative there.

So as long as rates stay high, it seems like the company would benefit from repaying the corporate debt rather than growing receivables.

And when you see the eye-watering IR on the corporate facility, that should be fairly obvious. 17% or something, coming down to 14% post-raising from memory.


Rates: Currently 3.85%

Big 4 banks think we're at or near to the peak.


The market thinks we're near to the peak.


Probability is 78% for a hold at the next meeting, otherwise a rise to 4.1% which most people think would be the peak.


On finance forums (AusFinance - Reddit), lots of people are complaining about cost of living. No more rate rises would be nice for everybody (though inflation something or other).


As a business owner, I noticed lots of COVID lockdown related inflation driving up the cost of Chinese goods and Chinese logistics previously (though less now). Then the Ukraine war seeming to impact oil prices which flow through to everything. And maybe reduced productivity due to AU lockdowns / cash handouts. But is there a clear cause right now? Or those same reasons still flowing through?