JP Morgan and HSBC are custodians for the investors they represent. Could be anyone. This is how these investment banks makes money, by safekeeping their investors asset, charge a % fee for that. Its in their name dude. Have a look at the detail before making claims like these please. It will mislead people.
Base on yield on long-term treasury rate, Australia is more exposed to inflation risk that the US. BBSR has gone up already and if RBA don't fund banks for cost of borrowing, everything will come to a screeching halt. Our banks also borrow from overseas markets. We hit 1.82% on long dated yield the other day. We might hit 2% sometime soon. I have computer programs tracking this non-stop.
You're right, NXL is not for faint hearted, but its ridiculously inflated share price will come crashing down when they show their earnings and it will mean revert.
Don't worry about the US fed, worry about our RBA. If you don't keep inflation in check then stagflation will hit and it is even worse. And I think this is where we are heading.
Anyways we are talking about valuation and this is going to disappoint very soon. If you discuss you valuation thesis, I'm happy to get into nitty-gritty.
NXL Price at posting:
$5.73 Sentiment: None Disclosure: Not Held
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