The announcement that NAB is preparing to call NABHA securities is good news for holders, but it is a reminder of common myths about hybrids
Banks
A double win for the major banks
The Federal Government has handed the Australian major banks two big wins over their non-bank competitors
Central Banks Spawned this Crisis
From 2012-2019 central banks should have been unwinding stimulus, but instead they increased it and created a bubble in financial markets and the economy.
A Virtue Signalling Rate Cut
The RBA’s decision to cut rates on March 4th seems more about appearances than cold economic logic.
There’s No Good Case for October’s Rate Cut
The RBA cut the Cash Rate on October 1st, but it has again failed to put forward a decent argument for why another cut is required.
The Dumb Money is Buying Bank Hybrids
The retail buyer base for bank hybrids is taking far more risk to get the same return as institutions buying AAA rated Australian RMBS
Central Banks are Fighting Economic Fundamentals
Central banks are using a monetary policy hammer when economies need a screwdriver. Here’s what they should do instead.
Bank Hybrids are a Screaming Sell
For bank hybrid investors, there are some obvious alternatives that are both lower risk and have higher expected returns