Never mind the dollar. The RBA and APRA are too busy jawboning Australian bank funding costs to worry about that. In the past week we’ve had speeches from Lucy Ellis of the RBA and Heidi Richards of APRA desperately explaining why it is that Australian banks are prudentially sound and fortified against the business cycle. Captain Glenn Stevens joins them today with a similarly titled effort.
It’s lot of fire power to throw at one poor little Variant Perception report. Then again, it’s also aimed at the Mining GFC which has Australian banks still leading the blowout in global banking spreads. CBA CDS bottomed yesterday and rose a couple of points to 106bps:
But both Wells Fargo and Credit Agricole actually rose a little further so the Australian Ponzi Index kept coming in:
Much more jawboning needed, Captain!
