Perhaps it was Captain Glenn’s soothing words backfiring or John McGrath buying more of his own stock but whatever it was yesterday the CBA CDS price did not like it, relaunching 12% to 117bps.
Wells and Agricole were up a little as well but not enough to prevent a big jump in the Australian Ponzi Index:
Pepper is going test the market with some sub-prime crud, from Banking Day:
Pepper Group has launched an issue of residential mortgage-backed securities, seeking A$590 million of funds. Pepper Residential Securities Trust No.16 includes a US dollar tranche of bullet notes. The issue is backed by a pool of non-conforming loans, including loans to borrowers with impaired credit histories (44.2 per cent) and loans made on a “limited documentation” basis (36.1 per cent).
Brace for some very wide spreads.
Meanwhile, Strayan mortgagees are not happy:
Retail customer satisfaction with the big banks plateaued towards the end of last year and has been falling since the start of the year.
According to the latest Roy Morgan Research consumer banking customer satisfaction report, ANZ, Commonwealth Bank and Westpac lost ground in February, compared with the previous month, and all four of the big banks suffered falls in their satisfaction over the six months to February.
Roy Morgan industry communications director Norman Morris identified out-of-cycle mortgage interest rate increases announced by the banks last October as the main cause of negative sentiment.
“Satisfaction levels for home loan customers of the Big Four are below the levels seen prior to the rate increases,” Morris said.
You wanna buy into the ponzi then deal with it.
