Yesterday I discussed the issues of bank funding and the risks from a hike in rates in the context of our overall work on mortgage stress. Essentially, if the majors proceed with a ~15 basis point hike in rates, the number of households in mortgage stress will rise from an estimated 970,000 to one million households; plus a consequential rise in subsequent defaults.
We then proceeded to develop the arguments on 2GB…
ABC Radio in Sydney…
and ABC Radio Melbourne.
Some confused stress with defaults… sometimes even simple messages get scrambled.
