Australian banksAustralian interest rates

Bank funding cost rocket bottoms out

David Llewellyn-Smith
Wednesday 4 May 2016
Advertisement

Yesterday saw a possible bottom in the pullback for Australian bank funding costs as CBA CDS rebound to 105bps, despite another rate cut:

Capture

The Ponzi Index also rose but European spreads also blew out so not too much:

3 US high yield debt has also reversed course. For this to be the bottom in Aussie bank yields then oil will also have had to top which is uncertain:

6

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
Twitter Share
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.