How committed are Avant to the Irish market?

(Separated from another thread to highlight it - Brendan)

In regard to competition and speaking about Avant joining the three remaining players (AIB/BOI/PTSB)……its not even close and wont be anytime soon. Retail presence matters for origination even in this digital age. Barring some big changes the future mortgage market mix in Ireland in say five years is going to look depressingly similar today with the majority of the UB/KBC share given over to AIB/BOI/PTSB.

Dont count on Avant being a committed player here long term, its my understanding, Avant are here in Ireland to help itself with a specific asset liability duration matching issues it has at the parent related to its insurance subsidiary and Ireland provided a unique opportunity in the European/EURO area to net some of those liabilities off (given our high rates vs Euro rates). If underlying ECB/sovereign rates rise in the core EU area and Avant can pick up 2% paper there it will.

Hi letitroll

I would be very surprised if Avant don't have long-term plans for Ireland. They have gone to a lot of expense to set up the Irish operation. They know that interest rates will rise in the next year or two.

I would imagine it will be loss making for a few years, so they must be hoping to make profits later.

The costs of setting up and the costs of closing down a business would be too high to set up a short term or medium term arrangement.

And they do offer 30 year fixed rates. So if someone does fix for 30 years, they won't mind at all if Avant leaves. Their interest rate will remain fixed.

Brendan

Brendan Burgess said:

Hi letitroll

I would be very surprised if Avant don't have long-term plans for Ireland. They have gone to a lot of expense to set up the Irish operation.

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Agreed. They have identified an uncompetitive incumbent quasi-cartel with a high cost base and they're cherry picking the lower risk customers. Why would they not stay?