Australian banks Australian LNG Australian Shares Iron ore price

Banks off to the races on tightening credit spreads

Monday, 14 March 2016

Bank shares are the new black today as CBA rises 1.1%, WBC 1.7%, NAB 1.8%, ANZ 2%, BOQ 2.1%, SUN 0.6% and BEN 2.4%:

The cause of the buying is globally contracting credit spreads (as I noted this morning) which had CBA CDS down 122bps on Friday (and my guess is another break lower today):

To my mind the trend wider will remain intact but until oil turns we’ll keep this buying up.

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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.