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Apparently over 80% of holders have agreed to exchange, meaning the rest can be forced to. Bullish PMs

Ahh Macquarie bank.. I remember when they used to be a wanna-be investment bank. Now they're a wanna-be investment bank near death. Their T1 bonds are rated BB !

Because of the liquidity (and perceived liquidity) of usd cash an t-bills. Like it or not, usd will get you goods/services almost anywhere in the world.. Whereas good luck trying to buy bread at a bakery with a silver coin (well you might get the $1 that is stamped on it). It will take far more...

6 trillion.. Every asset in the entire world wasn't worth 6 trillion usd in 1934. Guess the counterfeiters got a little too ambitious

Bank term funding costs are completely independant of the RBA cash rate. People still struggle to see that. Given NAB just paid 6% to borrow money for 5yrs, a 7.36% mortgage rate doesnt seem that bad.. Also, ANZ cut their 3yr variable by 15bps

Thats not really fundamental value.. Relative value yes - Woolies will do better than X if ppl eat more food, therefore I should buy wollies rather than X.. but that still doesnt tell me my I should invest in Wollies outright.. Still struggling to get an explanation how the fundamental value...

Whats the fun in that? Besides the true fundamental value of an asset is really only what someone is prepared to pay for it... (every other attempt to quantify fundamental value uses arbitrary measures that are generally unjustifiable.. Eg PE ratio of 10)

If the whole world is talking about big problems etc... Its generally time to do the opposite

If there is no volatility, and no expected future volatility, then the staddle would be worth zero.

If there was no volaitily, then traders would not make any money.. cant make moeny if the price of something doesnt move..

Lol.. welcome to my world. I talk that "garbage" every day :D

CBA issued their covered pretty wide in order to guarantee themselves first go at funding this year. Westpac issued a covered a week later 10bps tighter.. and not the covered bonds are trading 30bps tighter than issue, meaning ANZ and NAB can fund even cheaper. Plus in the grand scheme of...

Nope - the liabilities of U Bank are guaranteed to rank equally with the NAB parent. The whole bank would have to die for UBank to go

Not true... CBA paid 4.5% to borrow Gov Guaranted money for 5yrs in 2009. Today the 4 majors could easily borrow 5yr at ~6% without the gov guarantee... doesnt quite seem even close to double.

You might also be surprised to hear that aus the aus bank loan to deposit ratio is only 150% - meaning that 2/3 of the banks lending is covered by deposits, and 1/3 by bond/money Market borrowings.

Actually, that is not right - the banks cannot just create money from thin air - they have to either borrow it (from depositors or in the market) or sell shares. Only the reserve bank can actually create new money. Yes it all happens electronically, but real money actually has to transfer for a...

Should be easily done by Japan, USA, Germany, Canada and the UK (given the insatiable demand for their bonds on the secondary market). Also keep in mind that rolling debt over means the old bonds are retired and investors get the face value back.. They have to do something with that money, and...

Anyway... my argument is that fractional reserve banking could just as easily (and did back in the day) work with gold/gold backed currency as it does with paper. Unless you are completely against the idea of debt in any form? (Such as the "interest bearing loans and bills" that even goldsmiths...

I deposit 100oz gold in a bank account (for which i receive interest), and they lend it out 90oz to someone who requires it, eg to buy a house (earning interest on the loan). The borrower of the 90oz then pays for the house, and the seller of the house deposits 90oz in a bank, which then lends...

For all the bashing of fractional reserve banking, keep in mind that you could still have the same system with a gold backed or even a physical gold currency.. As long as there exist loans and deposits at banks, there will exist fractional reserve banking.