Australian banks

Rising interest rates via bond yields are not innocent for banks.

LOL, at Banking Day.

Borrowers in Australia with “zombie mortgages” are failing to make their mortgage payments, placing $270 billion in home loans at risk of default or severe stress in the coming year.

As MB readers will know, Australian banks are grotesquely overvalued versus global peers: Their protected status justifies some premium but this is kind of ridiculous.

The Council of Financial Regulators is out with its quarterly update: The Council continues to closely monitor the resilience of Australian households to higher interest rates and cost-of-living pressures.

A whiff of panic today in Aussie bank selling: As US regional banks increasingly fall apart thanks to deposit flight, crushed margins, CRE bad loans, tight liquidity, soaring counterparty risk, equity and capital evaporation.

I’ve lost count of how many times I’ve read Goldman Sachs and the iMSM declare the banking crisis “easing”.

Are bank hybrids safe?

The market is hunting banks: ELIZA RONALDS-HANNON: We’re seeing widening CDS spreads in banks other than Credit Suisse, with the cost of Deutsche Bank and Barclays swaps hitting new highs.

Barclays has some interesting analysis that is more reassuring than it should be perhaps because it is coming from Barclays.

Customer Owned Banking Association CEO Mike Lawrence, who represents 56 customer-owned banks, says the federal government should review the levy on Australia’s four major banks and Macquarie Group.

This is not yet threatening in the sense of triggering out-of-cycle mortgage rate move changes.

But, but, but they are safe they said.

Is it any wonder?

US regional banks are not stabilising: Partly it is the bank run.

It’s official.

Increasingly, this is looking like an end-of-cycle shock as a bull-steepening trade overtakes the bond market.

Courtesy of ZH.

Kroll has a succinct take on Silicon Valley Bank. It has been a long time since we’ve had to face a bank run, but in many ways Silicon Valley Bank (SVB) was a special case.

Last night we saw two US regional banks get experience runs of one sort or another.

Moody’s with the note.

As it happens, I bank with the CBA.

I’ve called this several times in the last year and been wrong.

Westpac is out with the credit quality update this morning and it is a doozy.