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[Michaelangelica]

Aspen Group moves to reassure investors
December 18, 2007 - 1:56PM
Commercial property investment firm Aspen Group has moved to reassure investors about its outlook, as its securities succumbed to the fallout in the property sector.

Aspen Group moves to reassure investors - Breaking News - Business - Breaking News

Australia Property Trusts' Bond Risk Hits Record on Centro Woes

By Patricia Kuo

Dec. 18 (Bloomberg) -- The risk of Australian property trusts defaulting on their debt rose to a record after Centro Properties Group, the owner of 700 U.S. shopping malls, said it has difficulty refinancing debt.
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``I wouldn't be surprised to see other small property trusts having problems refinancing their debt as well in the next couple of months, but the big names like Westfield and GPT are suffering mainly from contagion, rather than fundamental problems in their debt profile,'' said . . .

Bloomberg.com: Asia

Shopping for trouble By James Kirby

Exposure to sub-prime through its US shopping centres has hurt Centro. Now the sector faces 'contagion risk'.

PORTFOLIO POINT: The collapse in Centro’s share price shows a lack of investor confidence that threatens other LPTs with US interests.

Listed property trusts are suddenly in deep trouble, all of them. With a 76% plunge in the share price of sector leader Centro today (December 17) the contagion risk in this sector is intense.

In common with the recent shock decline of home lender Rams, the share price of the Centro group has been decimated due to fears the US credit crisis will make it impossible for the group to trade profitably.

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Shopping for trouble By James Kirby - Eureka Report

Sub-prime fall-out being monitored: Swan

December 18, 2007 - 10:13AM


Australia's corporate regulators remain "watchful and alert" to lingering fallout from the US sub-prime market crisis, federal Treasurer Wayne Swan says.

Mr Swan was responding to Monday's $53 billion stockmarket shakeout, as investors reacted to a local company caught up in the global credit crunch.

The stock market dropped 3.5 per cent - the biggest single-day fall in four months and the second biggest since the September 2001 terrorist attacks in the US - and led by a 70 per cent collapse in Centro Properties.

Sub-prime fall-out being monitored: Swan - Breaking News - National - Breaking News

US subprime ripples hit Australian loans

ADELAIDE Bank will tomorrow become the first Australian bank to raise home-loan interest rates because of pressures created by the US subprime crisis as the Federal Government takes a step back from the controversy.
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the RBA could raise rates again as soon as February. In the 12 months to November 30, the inflation gauge rose by 3.6%, the highest year-end inflation figure since March and well above the 3% ceiling of the RBA's target band.

Banks "securitise" long-term loans by accumulating them and selling shares in the pool as bonds or other debt securities with short maturity dates. Yields on short-term money have blown out as failing loans in the US have made debt investors wary.

As a result, banks have been paying more money just to maintain their loans.

US subprime ripples hit Australian loans | theage.com.au

Centro held hostage to global credit crunch
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"Certainly, if you've got any money invested in the property trust sector, you'd be feeling a little bit sick at the moment," Mr James said.
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In May, the company's shares hit a yearly high of more than $10 but today, they are hovering at around just 70 cents per share.
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Centro held hostage to global credit crunch - ABC News (Australian Broadcasting Corporation)

Reuters on Centro here
Australia's Centro dives again; contagion unlikely | News | Reuters



Centro held hostage to global credit crunch