Haasje Posted October 14, 2014 Share Posted October 14, 2014 Norwegian regional bank -trading way below book -has been profitable in the past 10 years including the crisis years -well governed jurisdiction (I think) negative -high leverage ratio I've started to read available documents from this bank but checking in here to see if anyone already researched it and/or to hear from people more knowledgeable why this bank is so cheap. Link to comment Share on other sites More sharing options...
alwaysinvert Posted October 14, 2014 Share Posted October 14, 2014 Haven't looked at it, but I think the key is probably the mortgage portfolio. Most Norwegian regional banks trade at "low" valuations, but they haven't yet had a correction in the property market. Norway had a pretty mild crisis. If there has been considerable growth in the loan portfolio in the last few years, I'd be very wary. Link to comment Share on other sites More sharing options...
sternalot Posted October 14, 2014 Share Posted October 14, 2014 Does anyone have any insight on how Norwegian mortgages are structured? What type of qualifications do borrowers need? Longterm home price trends? In other words, is there a reason to believe a correction is even needed? Link to comment Share on other sites More sharing options...
jouni1 Posted October 14, 2014 Share Posted October 14, 2014 no insight on mortgages. properties are super expensive. normal people can't buy(or it's going to be a long long road). household debt is high. a bit like canada in some places? the bull case is the sovereign wealth fund and being a rich country in general. Link to comment Share on other sites More sharing options...
rijk Posted October 14, 2014 Share Posted October 14, 2014 many norwegian savings banks have so called equity certificates in their capital structure, which probably need to be adjusted to book value regards rijk http://www.sparebankforeningen.no/id/17042.0 Link to comment Share on other sites More sharing options...
sternalot Posted October 14, 2014 Share Posted October 14, 2014 no insight on mortgages. properties are super expensive. normal people can't buy(or it's going to be a long long road). household debt is high. a bit like canada in some places? the bull case is the sovereign wealth fund and being a rich country in general. Mortgage structure in Canada is vastly different than the United States though, for instance. You cannot draw broad strokes on mortgages from country to country. Link to comment Share on other sites More sharing options...
jouni1 Posted October 14, 2014 Share Posted October 14, 2014 ok. Link to comment Share on other sites More sharing options...
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