jpmorgan warnns about anz first wave, page-15

Ctindale,

Mate you need to relax, perhaps another trip to Fiji will get the batteries charged for another day as you are beating the same same old drum here and it is getting a bit tedious.

My understanding from reading the annoucements is that ANZ does not have direct monoline insurance exposures. I agree there may be indirect exposure where ANZ lends to a company that holds assets insured by a monoline and if they they go bankrupt ANZ may suffer a loss.

If ANZ did have a material direct exposure ANZ would need to have made a statement to the market so the fact no statement has been made implies ANZ are not exposed.

ANZ had a $200 million exposure to CDS that was announced in the March results and provisioned. $200m is not material to ANZ profitablity and has been fully disclosed to market.

The funny thing is that I recall four years ago ANZ had an over exposure to the electricity industy and ANZ actively rebalanced towards financials that was considered safe and financial companies are currently the ones in trouble.

I hold for the long term and feel that all banks are oversold and will be supported by yield and investors exiting the resource sector
Cheers