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Mortgage keystone cracks widen as Genworth booted

David Llewellyn-Smith

Friday, 10 March 2017

Not much good news for GMA lately:

Recall that the lenders mortgage insurer is still trading at its float price:

And today it’s going to sink a long way below it.

Thankfully APRA has been busy securing the cracking keystone in the Australian mortgage arch by letting it run its capital in extraordinary dividends since the float.

When the bust does eventually come, GMA is the walking dead (straight into the tax-payer arms).

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.