Worst IPO of the Year..... RAMS

Rams really deserves the award "Honey, I Shrunk The Company". What an IPO.....

Rams verdient in der Tat den Titel "Honey, I Shrunk The Company" . Was für ein gelungenes IPO...... Rams is blaming like Northern Rock the freezing of the commercial paper market for the trouble. But when i look at their products.......

Rams schiebt wie z.B. Northern Rock die Probleme ausschließlich auf das einfrieren der Kreditmärkte. Wenn ich mir allerdings die Kreditangebote ansehen sind wohl berechtigte Zweifel angebracht....

Rams Homepage
If you are buying your first home, refinancing, self-employed; you have no deposit, want to purchase an investment property or if you simply want to cut years off your loan and manage your money better - there's a RAMS home loan to suit you.

RAMS offers flexible, competitive and innovative solutions to suit a wide range of home loan needs. How can we help you?

RAMS 100% Home Loans – The faster way to buy your first home
RAMS Limited Deposit – No need to save a full deposit
RAMS Easy Start – Enjoy a 3 year home loan honeymoon!
RAMS SmartWay Pro Pack – To help you own your home sooner
RAMS Standard Pro Pack – Enjoy a discounted rate for the life of your loan
RAMS Fast Track – Buy your first home sooner with NO deposit and NO
mortgage insurance
RAMS Basic – The no fuss, low rate home loan
RAMS Zero – A great rate with zero account keeping fee
RAMS Investor – A low rate home loan for property investors
RAMS SmartWay – The “smarter” all-in-one home loan
RAMS Standard Variable – Enjoy 100% Offset facility and free redraw
RAMS Fixed Rate Options – Protect against rising interest rates
RAMS Self-Employed (SE) Pro Pack – A discounted rate and low paperwork for the self-employed
RAMS Low Doc – The easy, low paperwork home loan for the self-employed
RAMS Low Doc 500 Plus – A preferential rate and low paperwork for the
self-employed
RAMS SmartWay Low Doc – Low paperwork and smarter money management
RAMS Low Doc Line of Credit – Convenient access to equity for the self-employed

Westpac to Rescue Rams, Refinance Debt, Buy Branches
Oct. 2 (Bloomberg) -- Westpac Banking Corp. agreed to take over Rams Home Loans Group's branch network and provide A$1.5 billion ($1.3 billion) in funding after the Sydney-based lender failed to refinance its short-term debt.

Westpac, Australia's fourth-biggest bank, will pay A$140 million for the 92 outlets and assume all future loans, it said in a statement today. Rams will retain its current A$14.5 billion of mortgages and remain traded on the stock market, it said in a separate statement.

Rams shares slumped 19 percent today and have declined by two-thirds since listing on July 27, making it the worst- performing initial public offering in Australia this year. Shares of Westpac, which will expand its mortgages business by 10 percent through the deal, rose 2.6 percent to a record.

``They're effectively buying Rams future loans and customers for A$140 million, versus Rams's market value of around A$260 million,'' said Michael Birch, who helps manage the equivalent of $133 million at Wallace Funds Management in Sydney. ``There's nothing much left for Rams now as a viable ongoing concern.''

Rams has sold top-rated Australian mortgage-backed bonds at yields almost three times the premium it paid on debt in June after failing to refinance A$6.1 billion in short-term loans after buyers fled the U.S. commercial paper market. The A$1.5 billion provided by Westpac will be used to help refinance this debt, which covers Rams's current loan book.

`No Deposit? No Worries!'
Rams, which isn't a deposit-taking institution, obtained more than 40 percent of its funding for mortgages from the U.S. commercial paper market. It touts loans for as much as 100 percent of the purchase price of a home under the slogan ``No deposit? No worries!''

Rams shares started trading the same day that the risk of owning corporate bonds soared to the highest on record in the U.S. and Europe. The company began in 1991 as a wholesale finance provider for lenders and expanded its network to serve individuals in 1995.

"Honey, I Shrunk The Company"

Time for another award winning performance....... And this happened despite no exposure to the US subprime market and a 100% mortgage insurance for their loans..... This example shows that it´s all about liquidity.....The same factors that were driving things to unsustainable levels are now making no difference with casualties on the way down

Mal wieder Zeit einen Preis für besondere Leistungen auszusprechen..... Bemerkenswert ist das dieser Verfall stattgefunden hat obwohl kein Bezug zu Subprime besteht und die Hypotheken zusätzlich abgesichert sind. Es geht wie immer nur um die Liquidität der Kreditmärkte.... Die gleichen Faktoren die auf dem Weg gen Norden nicht unterschieden haben reißen jetzt Querbeet alle auf dem Weg gen Süden mit.

Rams Says U.S. Credit Markets Threaten to Cut Profit
Aug. 14 (Bloomberg) -- Australia's Rams Home Loans Group Ltd. said the shakeout in global debt markets may cut profit, sparking a 19 percent plunge in the stock that makes it the nation's worst- performing initial public offering this year.

The impact on the company's June profit forecast ``is likely to be material'' because of rising financing costs, Rams said today in a statement. The Sydney-based lender, which went public last month, gets almost half the funds for its mortgages by selling short-term debt in the U.S.
...."Rams won't be the last Australian company to feel it, and you can multiply it by a hundred overseas.''

Rams, with A$14.2 billion ($11.9 billion) of loans, is the first Australian mortgage company to warn profit may be hurt by the deepening crisis in credit markets. Australian hedge funds Absolute Capital Group Ltd. andBasis Capital Fund Management Ltd. have already been caught in the rout and are trying to avoid selling assets at distressed prices.

The shares slumped 34 cents to A$1.41 at the close in Sydney. The stock has declined 43 percent since being sold to the public at A$2.50 each and listing July 27.

Rams press release ``The U.S. has experienced unprecedented disruptions in recent weeks, which has resulted in material increases in spreads and shortages in liquidity,'' Rams said in the statement.

Forecast in Doubt
The cost of U.S. short-term commercial loans has risen about 20 basis points to 32 basis points above the 30-day bank bill swap rate, Rams said.

The lender included a debt-market crisis among a list of potential risks in a June 27 document for prospective investors ahead of its A$695 million share sale. UBS AG managed and underwrote the offering, when Rams forecast a 35 percent gain in 2008 net income to A$58.6 million.

Rams, which has 80 branches in New South Wales, Victoria, Queensland and Western Australia states, said it had no investments in U.S. subprime loans, the source of the spreading turmoil in credit markets. All the company's loans have 100 percent mortgage insurance, it said.

Analysts at Credit Suisse yesterday cut their profit estimate for Rams by between 10 percent and 15 percent, citing the problems in debt markets. Still, the broker raised its rating for the stock to ``outperform'' from ``neutral'' following a decline in the shares.

``We estimate the current conditions could trigger a refinancing of Rams' extendible commercial paper structure to more expensive, longer-term funding,'' Alex Chau, a Sydney-based analyst at Credit Suisse, said in the report.

"Honey, I Shrunk the Company"

Nice worldwide roundtrip from Mark Gilbert / Bloomberg about the subprime spillover. The latest US winner should come as no surprise In Europe this company deserves the award .....Click on the Headline to start the roundtrip


Netter Übersicht über die momentanen Auswirkungen der Kreditklemme. Der letzte internationale Gewinner dürfte ebensowenig wie der deutsche Vertreter eine Überraschung sein.......Klickt auf die Überschrift um die Tour um den Globus zu starten.