Australian banks

The usual Aussie bank groveling articles are appearing as we approach full-year results.

Veteran bank analyst Jon Mott warns a $250 billion wave of mortgage delinquencies could sweep Australia if ANZ’s, Westpac’s and the financial market’s 3% official cash rate (OCR) forecasts come true.

The Economist has published an interesting report explaining how rampant house price inflation across the developed world has diverted capital and resources away from the real economy and stifles productivity: In recent years another strand of research has emerged, which, rather like the political economists of yore, attributes many long-standing economic ills to land.

Morgan Stanley bearing up on US banks.

This mispricing is one for the ages.

I wonder what juicy gig he’s going to: Australian Prudential Regulatory Authority chairman Wayne Byres has advised Treasurer Jim Chalmers that he will step down, with a search now underway for his replacement.

BofA noting that Canadian banks are crashing. The rationale sounds eerily familiar. —————————————————————————————————————————————- What? RBC-RY shares closed -5.6% yesterday (TSX-Banks -3.8%).

Last week, Westpac and ANZ hiked their fixed mortgage rates by 0.5% and 0.9% respectively, which more than doubled fixed rates from a year earlier.

The Reserve Bank of Australia (RBA) has released credit growth data for the month of May, which captures the first 0.25% hike in the official cash rate.

A new cost of living survey conducted by online financial brokers Savvy suggests that 26% of Australian mortgage holders will experience mortgage stress, defined as a homeowner or household using more than 30% of their net income to meet mortgage repayments, following the Reserve Bank of Australia’s (RBA) consecutive rate rises of 0.75%.

Typically, banks and energy companies enjoy a similar factor rotation in stock markets, marked as cyclicals.

The Reserve Bank of Australia (RBA) has released mortgage growth data for March, which reveals that Aussie mortgage demand continues to soften.

It has been 11 years and seven months (November 2010) since the Reserve Bank of Australia (RBA) last lifted the official cash rate (OCR) from 4.50% to 4.75%.

Last week’s federal budget contained various measures aimed at enticing first home buyers (FHBs) into the housing market.

On Tuesday, the Australian Prudential Regulatory Authority (APRA) released data on high debt-to-income (DTI) new mortgage lending.

There are three sources of stress piling up upon bank funding costs.

As we know, Australian households are the second most indebted in the world, according to the Bank for International Settlements. Yet, this risk factor is often downplayed on the basis that the majority of Australia’s household debt is held by those most able to service it (i.e. high income earners).

In 2020, we saw a blowoff in stimulus.