As banks free fall, funding costs skyrocket

The AUD is soft through the morning:

Bonds are bid again:

No relief today for the ASX but it is hanging on grimly below support:

Big Iron is up on the Chinese slowing Costanza play:

Big Gas is down, down:

Big Gold is hopeful of the Fed:

Three of the major banks are in free fall again on a Bell Potter downgrade. Only CBA is yet to find new lows:

As they plummet, funding costs are going the other way which makes a certain amount of sense if you see the problem as counter-party risk:

Big Realty is mixed but there is no mistaking the trend:

Welcome to another week in the great Australian property bust.


  1. So what happened in May to reduce the counter party risk if that is what we are attributing the funding cost rise to?

  2. I just spoke to a connected Chinese lady who knows China well, she said China is much worse than what they are letting on
    She’s saying it’s a bit of a disaster and expect much more slowing
    She said it’s face saving at the moment