Bearcuban, CBA issue is to redeem PERLS, not buy shares in other...

  1. 104 Posts.
    Bearcuban, CBA issue is to redeem PERLS, not buy shares in other companies. The buying of shares is done by the Wealth Management arm of the bank (a.k.a Colonial First State), which invests the money of its investor clients (mainly superannuation). The bank's capital doesn't get invested in shares - it supports the risks it takes in lending to its borrower clients. However, banks raising capital will potentially assist indebted companies like BLY by making funds available to refinance their debt.
 
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