EXCELLENT CREDIT

Sun (Auckland), Volume I, Issue 135, 29 August 1927, Page 2

EXCELLENT CREDIT

NEW AUSTRALIAN LOAN By Cable.—Press Association. —Copyright NEW YORK, Saturday. Owing to the unqualified success of the flotation of the Commonwealth loan of about £8,000,000, observers express the conviction that the price of the issue will rise and should, within the course of a few’ months, reach 98.5, possibly nore. Australia’s credit is excellent and a receptive market is assured for further Commonwealth issues which are expected to be placed in New York in the future. Best-informed people, however, are inclined to believe that New York will not supplant London as the market for Australian loan flotations, but rather that both markets will tend to become equally important to the Commonwealth. Both should even grow progressively better for Australian issues. No surprise is felt that the latest loan was underwritten by J. P. Morgan and Company. Some time after it became known that the Commonwealth was entering the market, the belief was expressed that Morgan and Company would no doubt get the issue. \ It is pointed out, however, that whereas the last £15,000,000 loan was officially underwritten by Morgan and Company alone, this issue is under the aegis of the National City Company, and a group of other bankers, although the latter are all known to bo affiliated with Morgan and Company.—A. and N.Z.