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"Not one has been anything but a virulent denunciation of Derivex which leads me to believe your primary purpose here is to do exactly that" Thommo....calm down...all I did was point out that many of the claims and statements made by Derivex don't really make a lot of sense to somebody who...

"Sounds like a piss weak excuse to me." ...IMHO it makes other piss weak excuses sound plausable. Seriously: If he really feels he has been 'defamed' why did he not grab the oportunity to spend time with somebody who could independantly come on here and speak 'positivly' about the product...

From memory the tender period for my new side fence (value $2100) was open for longer than Devirex have allowed for their multi billion dollar funding and licencing process. ;)

"I wonder if they're not following the wholesale banking way because they're not a bank" .....every non-bank/non ADI lender of scale (more than $20mill of loans) sources their funds in some way from banks via wholesale facilities....once they have built up enough loans to warrant a bond issue...

"He certainly has no ability to communicate the underlying principles of Derivex".........which in my experience is not a good sign. "We have recently been dealing with directors of securitsation at a couple of the major banks and no-one in their world knows anything about this.".......I also...

On the Devirex site their is mention of the Funding tender being announced this week...has anybody seen or heard anymore on this point. If they are looking to 'appoint' a funder this week and start funding next week then that would be impressive.....the shortest timeframe I have ever seen...

"The original investors will get a share of the % spread that Derivex is making." ...which is way too little to attract investors. "Bankwest are not AAA rated but the income coming from interest deposited a t a bank is as the mortagage payments are secured against property and the interest...

OK....let me put forward the two questions I keep asking myself: Why not lend the money at 3%....ie half what other lenders charge, be knocked over in the rush and still make a bigger fortune? Banking is about making profits not friends ! How is the person who put in the original $1.5m or...

Thommo...I'm sorry but your take on how Fanne Mae/Freddie mac works is wrong. Here is a snippet from the Fannie Mae website There is also some good content on their site pointing out that they are in no way supported by the government. All they are doing is issuing Mortgage Backed...

Roofarmer....a few quick points if I may: Whoever put the original $950,000 in will be expecting to earn something...it looks like they have put in equity rather than debt. The typical equity return the professional market expects on a start up company is about 20%...I can't see where this...

Roofarmer...how much interest do Devirex pay on the original $950,000? Are you asuming zero interest to on this money?? And my quick skim of the Finacial Review suggests that the best CMT in Australia is currently reteurning about 5.10% The people buying the AAA rated bonds...I...

In the structured finance world the assets are the cashflows....hard assets can have limited value whn they fall out of fashion (railways for example) and are difficult to sell in the event of a emergency. Where as cashflows can be rated as to their predicatbility ....but it is important to...

One thing that nobody has really focussed on .....Return on the Capital of $1,500,000. Despite what some bods would belive ...nobody (ouside the sphere of money laundering) gives you $1,500,000 and expects no equity return or interest on it. To suggest that the cost of capital is zero (as...

XBenX.....the term ecomomists like to use is "Hyper-inflation" ;) as seen in Germany where workers were paid at lunch time each day so they could quickly run out and spend their money before it became worthless ....they would then do the same the next day and so on ! :eek:

Quote "The repayments are guaranteed to flow back to the borrower on a "circular guaranteed basis" ( AAA local registered public trustee overseeing and responsible for securing the funds in the interim ie the 20 year loan term )." ...mate you know as well as I do that the rating of the...

Fellas...if you recall Pauline Hanson mentioned the idea of governments 'just printing more money' and every newspaper, comentator and economist laughed at her so hard and suggested that she go back and do year 8 economics again. I suggest you do some own study on monetary base etc before you...

Rolf is on the money....all lenders currently have the right to onsell your mortgage to anybody they please (in fact they probably have sold it already) and they do not have to inform you. Many of them achieve this by what is called 'assigning them in equity' which is a virtual sale that is...

Thommo...as I posted above the banks and non bank lenders already source large amounts of their money from the US and Europe and the net saving is 1/10 of 1% (on a good day)...there is no free money out there and there are massive holes in the logic and cash flows as outlined in the responses...

Good post Steve...if that is the case then this is even more dangerous than I first thought...lets face it, using an option is a geared played to start with....pulling forward and gearing up the net interest margin on a home loan (esp one with no net interest) so you can enter into more options...

FYI...a Junk bond is one issued by a lowly rated or unrated company....ie there is a question mark over their ability to make the repayments. But they are still a company with real assets and a real business. What you are suggesting is that Devirx issue bond backed by profits they may make...