This is a repost from the a2m thread, incase the original gets moderated, by the
Hot copper arm chair lawyers.
H00ts
Hope ypu have a gopd easter long weekend.
Could you please help me out with sone thing that has been puzzling me.
With th recent down grades to AA- from AAA and the expectation that tje dividends will be cut - my understanding that if this was to happen the banks would be stronger?
How ever with the down grade to AA-, doesnt the overseas Bank Bill Swap Rate become more expensive, for loan costs to the bank for the recent downgrade of the credit rating?
This is my understanding that it would.
I would appreciate any open opinions on this.
The hard part is we are not privy to this information.
