Australia’s exchange traded funds (ETFs) might have felt some heat from the barbie yesterday.
National Australia Bank Ltd., the country’s biggest bank by assets, said that most investors in its $812 million bond sale pulled out after the company raised provisions for mortgage-related losses, reports Laura Cochrane and Stuart Kelly for Bloomberg.
Around 70% of investors lost interest in the bank’s offering, one of the largest by any Aussie bank in a month. National Australia’s shares plunged by the most since they have in October 1987.
The better news is Australia is in a good position to resist an economic downturn, said the country’s treasurer. While other countries have slowed, the finely tuned banking sector down under will keep them ahead. The nation is rumored to have a substantial surplus to act as a buffer during trying economic conditions, reports Angela Macdonald-Smith for Bloomberg. Commodity exports are golden right now and Australia continues to receive high prices for its exports, as well.
AUS launched on April 10, and is down 8.5% since then. EWA is down 14.6% year-to-date.
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