Starting with CBA (First Colonial $850 million mortgage mortgage fund). These are public funded mortgage funds loosely guaranteed by the Australian goverment, as apposed to Bank term deposits fully guaranteed by the Australian goverment. Regardless mortgage defaults (generally) should be a significant stress on balance sheets of Australia banks and mortgage funds in 2010.
The false dichotomy in market thinking is how the Australian unemployment rate can keep falling (now at 5.5%) yet mortgage losses (CBA) are increasing.
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