CBA management hasnt bought back a decent amount of its shares...

CBA management hasnt bought back a decent amount of its shares since May of last year. Jamie Dimon said he would never buy back any JP Morgan stock above 2 times book. CBA is 3.7 times book. Pretty obvious why CBA isn't buying back its stock. CBA management is quality - why would management burn shareholder equity buying at these comical prices? The answer - they haven't, and they wont. Buying at these prices is the super contribution from Bill who lives across your street. Whose fund manager needs to invest Bill's money to collect a bigger management fee.

Ive always wondered why as a source of cheap funding. CBA doesn't hit up its investor base and do a capital raise. Instead of going to the wholesale market and borrowing above the cash rate, CBA can sell equity to investors at 30 times earnings 1/30 = cost of capital 3.3%. Now whilst CBA doesn't need to raise capital to meet credit demand, CBA could raise capital in order to redeem its hybrids in which they are paying out a margin above the BBSW, some of these hybrids are paying out over 6%!! Whereas selling equity at 30 times earnings - that's tier 1 capital at a cost of only 3.3%!!!! This would reduce cost of capital and improve margins.