Hi All
Due to some interesting mixed and unusual circumstances on a loan decline this week, we have this week learnt that WLMI and SG Bank LMI have now merged their exposure aggregates.
I believe there is still some policy differentiation etc
Someone with better connections than me may be able to confirm the rumours but neither my SGB, WBC, or RAMS folk have released any info.
Basically, what it means is that between the 2 lenders we could carry 3 and a bit LMI exposure per borrowing entity, and SGB and WLMI exposure was totally separate.
Now with the risk combined the max is 2 mill.
I understand this doesnt affect the majority of Joe Public, but it certainly affects a lot of the middle range investment folk, and can become a millstone for those with existing exposures, even if well managed.
I bet this is one little consequence that the ACCC didnt take into account when allowing the merger to proceed. The merging of the LMI providers is a MUCH bigger loss to the market than losing a Bank per se, because the number of separate LMI providers is now very small.
ta
rolf
Due to some interesting mixed and unusual circumstances on a loan decline this week, we have this week learnt that WLMI and SG Bank LMI have now merged their exposure aggregates.
I believe there is still some policy differentiation etc
Someone with better connections than me may be able to confirm the rumours but neither my SGB, WBC, or RAMS folk have released any info.
Basically, what it means is that between the 2 lenders we could carry 3 and a bit LMI exposure per borrowing entity, and SGB and WLMI exposure was totally separate.
Now with the risk combined the max is 2 mill.
I understand this doesnt affect the majority of Joe Public, but it certainly affects a lot of the middle range investment folk, and can become a millstone for those with existing exposures, even if well managed.
I bet this is one little consequence that the ACCC didnt take into account when allowing the merger to proceed. The merging of the LMI providers is a MUCH bigger loss to the market than losing a Bank per se, because the number of separate LMI providers is now very small.
ta
rolf