Oh yes, it’s awwn. The CBA CDS price added another 5% Friday to finish at 95.34 and is now travelling impressively through into the middle atmospheres:
Wider spreads are now showing up in the RMBS markets as well. In May this year Westpac paid 80bps on the top tranche of a $2.1 billion issue. In June Bendigo and Adelaide Bank paid 92bps on the top tranche. In July ME paid a margin of 95bps on the top tranche. Last week People’s Choice Credit Union paid 105bps on the top tranche.
RMBS issuance gets uneconomic somewhere around 120bps, in the absence of government subsidy at least, which is surely being warmed up as we speak.
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