The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."
Monday, May 14, 2012
NAB CEO backs govt intervention in RMBS market
Clyne favours steps to help shift loans off bank balance sheets – as in Canada, where the central bank mediates the securitisation of mortgages. Normally, bankers are loathe to lose loans because they contribute interest income but if there’s not enough funding it makes more sense to take fees from facilitating securitisation than to constrain lending altogether. Kelly believes more can be done to facilitate the tapping of Australia’s $1.3 trillion superannuation pool. Ironically, in this debate APRA, the RBA and Treasury are more market purist than the banks. They remain unconvinced that intervention is necessary: super funds will invest in bank debt when it is attractively priced. Meanwhile, as the population ages the demand for less volatile investments will fill the funding pool.