credit mkts recovering as per target, page-14

Standard procedure here from smaller brokers. Put a low valuation on a stock (but above) current price so limited reputational damage if it doesn't outperform but they then can say 'I told you so' when it rockets.

The whole 'can't write new loans' thing is wrong - rams has (as of 2 weeks ago) an additional 1b of warehouse funding advanced by NAB to write future new loans . As I said before, based on a 5 yr loan turnover (industry and rams standards) this 1b will last for at least 4-5 months of new loans at rams IPO rate of growth . If growth rates were to fall then this 1b will last longer.

As for 'running out of cash', home loans are an annuity business ffs! Provided the NIM positive then RHG remains a cash flow positive business. The whole point about the current spreads, and why I have been posting them, is they indicate that at CURRENT ABCP rates rams IS STILL PROFITABLE upon refinancing. It is only paying 25bp above its previous rate (12 bp above Libor) on XCP which IS STILL PROFITABLE.

Basically some ppl want in at an even lower price and are trying everything to talk down the SP. The speculation in the media will, imo, force rams to finally update the market of this (as it really should have done 2-3 weeks ago and given weekly updates to ensure all investors are equally well informed) as it seems mr market has gone into crazy pessimism mode.