Marketplace for debentures
Friday, April 5th 2002, 7:05AM
Auckland based investment adviser Alan King has established what he calls New Zealand Debentures Exchange, which is a secondary market for New Zealand registered debentures.
The idea is that investors can make a capital gain from owning a debenture.
Currently six buy orders had been posted on the exchange and no sellers had emerged.
Because the exchange is based on the Internet brokerage costs have been kept low at 0.3%.
There is no cost to list a security, however the seller pays the brokerage on any transaction.
King is reportedly interested in adding capital notes and subordinated debt to the listings, if the exchange proves viable.
The New Zealand Stock Exchange offers a debt market, however King is not interested in competing with the NZSE.
The debenture exchange is linked to his company Canopus Investments, which according to its website, is an 'independent New Zealand financial services company' which offers discount sharebroking, managed funds, financial planning and hedge funds.
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