by Kris Sayce on November 28, 2008
We have climbed down from our soapbox today, in order to take a look at the banks. Or, more precisely, the dividends on bank shares.
Today’s Age reports that “Australian banks pressured to lower dividends.” It’s a touchy subject for the four major banks. If there are two things Australian income investors like it’s a nice juicy dividend and 100% franking.
With interest rates falling, investors will naturally be looking for other sources of income. And with bank share dividends offering yields of about 9% it is a pretty attractive investment.
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by Kris Sayce on November 14, 2008
During the last few months we’ve shamelessly written that we believe the market has bottomed out. But just like the patient who is on life support, it is too early to tell whether it really will improve from here or whether it will have another cardiac arrest.
The only sector of the market we have been cautious on is financials. The banks especially. But now we are tempted to start whistling a different tune.
It’s risky because the Australian banks are not out of the woods yet. In fact some of them are only just starting to admit they have been hiding in the woods. Commonwealth Bank [ASX: CBA] springs to mind.
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by Kris Sayce on October 7, 2008
Back on the 19th September we noted how the Future Fund was advertising in the Australian Financial Review (AFR) for a Senior Analyst - Debt & Alternatives. Well, it turns out the Future Fund has been getting further involved in the credit crunch/crisis/meltdown.
According to The Australian, Australian banks have been so hard up for cash that they have arranged loans with the Future Fund.
Naturally, the Future Fund claims in the article that the loans to ANZ [ASX:ANZ], National Australia Bank [ASX:NAB] and Westpac [ASX:WBC] are nothing out of the ordinary. It claims that these loans merely form a part of its $4.2 billion fixed interest strategy.
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