The economic darlings (countries) that were to skirt a global recession in 2008, due to the Chinese inflated property market, are now showing stresses, bad ones.
New Zealand which is a heavily reliant on exports, namley farming agriculture/commodity produce has been straining to stay out of a fall blown economic downturn. Their luck could be up.
South Canterbury finance, which is a private non bank lender of a 84 year old history. That in it's last days (probably became a 'Ponzi' lender) have gone bust, with the New Zealand government looking at a tab of $1.7billion NZD deposit guarantee for depositors.
This Asia/pacific bankruptcy of a major lender should effect CDS spreads of the Asian/Pacific, a reverberation of fear on any non-bank lenders, or bank lenders that are lending and feeding into the overinflated Asian/Australian/New Zealand property markets. I'll post some Markit Itraxx data when it comes to hand.
from Reuters:
"One of New Zealand's largest finance companies, privately-owned South Canterbury Finance, has collapsed after a bid to recapitalise failed, the company said on Tuesday. South Canterbury Finance, which has listed debt, had a deadline of the end of August to secure new capital, or face the threat of receivership"
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