Saying centro's collapse is factored into the share price is like saying that the risk of recession was factored into the market indices (which it probably was) at 5000.
The last year on the markets has shown that even if the worst possible outcome is factored in already, that bad news will still push the market lower. A large write-off will hurt some bank SPs significantly short-term but they will recover. I think CBA is however less concerned that the others as their balance books are much healthier. If centro goes into receivership just remember "Which Bank" probably are responsible.
Think of centro like your bet on the Melbourne cup - just a punt - and bet what you can afford to lose! The odds are much better IMO but be prepared to come out empty handed.
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