Comments on: Analysts find banks’ margins swelling as ACCC may block mergers http://www.lendingcentral.com/2009/04/15/analysts-find-banks-margins-swelling-as-accc-may-block-mergers/ The first word in mortgage news Thu, 18 Mar 2010 18:39:43 +0000 http://wordpress.org/?v=2.5.1 By: Howard http://www.lendingcentral.com/2009/04/15/analysts-find-banks-margins-swelling-as-accc-may-block-mergers/#comment-6277 Howard Wed, 15 Apr 2009 03:42:59 +0000 http://www.lendingcentral.com/?p=2391#comment-6277 >This implies a 94 basis points spread expansion benefit for the banks through out-of-cycle pricing,” they said in a note to clients. Note to self: don't trust Goldman Sachs JBWere sales letters. This sound like a massive buy signal for the Banks, until you realise they're paying 115 basis points more for retail term deposits, and 100 basis points more for long term bond issuances. And that's squeezing their margins even before the looming storm of bad debts coming Australia's way. >This implies a 94 basis points spread expansion benefit for the banks through out-of-cycle pricing,” they said in a note to clients.

Note to self: don’t trust Goldman Sachs JBWere sales letters.

This sound like a massive buy signal for the Banks, until you realise they’re paying 115 basis points more for retail term deposits, and 100 basis points more for long term bond issuances. And that’s squeezing their margins even before the looming storm of bad debts coming Australia’s way.

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