Captain Glenn spins bank funding rocket
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From Captain Glenn in his Q&A in Parliament: “At least for our banks, to date, there’s no evidence that funding markets are impaired though a little bit of pressure on the cost.”
The CBA CDS chart today is at 127bps:
Rather laconic from the Captain given “pressure on cost” is impairment at some point. I stand by my assertion that with spreads at these levels the mid-tier banks are somewhere near finding securitisation uneconomic and wholesale money too expensive. It’s more like 150bps or more for the majors.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.