Svr reality, I think, is that the secured lending (like cars)...

Svr reality, I think, is that the secured lending (like cars) underwent ‘a structural crunch’ or ‘change’, particularly on NIM.

Example: Old Rams finance went basically bankrupt over-night during GFC simply because its warehouse funding was suddenly prohibitive…and securitised markets closed, with immediate effect. Rams sold its name to Westpac, then ran off its remaining portfolio at sudden eye popping (crazy) rates, where it could. (It was a heroic outcome which made a lot of coin for ‘Hedgies’ but things could have been different).

I think Svr’s conservative management is wise enough to realise where they are on food chain. (Most funding from big banks). Heck, number of years ago, Svr reduced it lending (capital) to its own money only. Warning…haha

Nobody likes dealing with funding entities which can offer their own products to consumer, at a top line price….and determine funding cost of ‘dependent’ entities.

Svr management keeps talking about taking market share (blah, blah) but originations are declining markedly. NIM is apparently down to 4% on new loans.

What I like about SVR is their simplicity. SVR wants to be in this business. (Cars..etc). So this is what good management looks like when the tide is going against you.

Ccv, for example, wink, wink, was getting into this business….now they are getting out quick smart. I look at CCV and honestly have little idea what business they are in. Did CCV make margin from the Canon D6 I bought from them? I doubt if they even know.

It’s only my gut feel and stuff. I think Svr is good and efficient at what they do.