Bets Against Australia’s Banks Rise
Hedge funds looking for the next housing bubble think they have found it – in Australia – and they are wagering more than $5 billion that the country’s banks will feel the pain.
Vera Sprothen writes an article for the Wall Street Journal describing the anticipated downturn in the housing market. She mentions Montgomery’s Andrew Macken.
Click here to read the full WSJ article.
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Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Tiago
:
Nice one, I’m surprised I haven’t read anything about how ING might be slowly eating into the big banks cake. Their offer on a normal bank account feels like is almost too good to be true compared to the big banks. Deposit $1000 per month(you don’t have to keep it there, you can withdraw), you get a free bank account, you get 2% cash back on pay wave transactions under $100, you can use any ATM in Australia at no charge, they offer a higher interest on savings account as well. Extra!! If you open a bank account with them and use the code DTS181, you will get $75 dollars and I will get $75 too!! Hope you let this one Roger!! Offer to the first 6,000 applicants until the end of july. It costs them $900,000 to guarantee at least 6000 customers.
Imagine all those people who give approximately $60 per year to one of the big banks, plus gives them an easy $2 each time they use another bank’s atm. Someone must wonder how many people hold an account with ING at the moment, how fast are they growing and how many people eventually stop using the big banks after they open an account with them, you can easily assume after having a better deal on a bank account you might search a better deal on a credit card as well, … in the long run it must do something to the big banks ROE. Even know this part of the business is small compared to lending. Would be interesting to see a more detailed view on this.
Great work guys
Tiago
Andrew Mckenzie
:
Hi,
What is The Montgomery teams opinion on the Banks and the attatched article? I noticed in my last investor report I received from you guys that you held both CBA and Westpac in the portfolio.
regards, Andrew