It doesn't seem to have hit the financial press anywhere yet but AWB via Landmark is rapidly gaining a reputation as the rural lender of 'last resort'.
I am aware of some shocking debt to equity ratio loans that Landmarks finance division have been doing that every other lender has turned away - as recently as the last few days.
Elsewhere there seems to be big exposures to clients with in excess of 100% debt to equity but there appears to be bugger all provision in the accounts and bugger all being done about it by Landmark.
International rural bank Rabo used to be the underwriter but apparently not anymore - i suspect its ANZ. If thats the case then is this another fine mess that mr Smith will have to deal with and that he 'knows narthing' about just yet?
Quite a few clients haven't had crops in three years and the same applies in livestock areas.
Do landmark have the internal controls/
NAB and the experienced rural lenders rarely lend beyond 40% debt to equity. What makes AWB clients able to afford 100% ?
Watch this space.
AWB Price at posting:
$2.43 Sentiment: ST Sell Disclosure: Not Held
