Friday 11th July 2008 |
Text too small? |
The bank established a provision of A$181 million on March 31 after disclosing an exposure to US$1.1 billion of CDOs via the provision of liquidity lines to conduit financing vehicles. CDOs are securities backed by a pool of bonds, loans and other assets.
Since March, "the economic environment has deteriorated further," NAB said in a statement. "There continues to be a risk that further provisioning may be required."
The global credit crunch left banks with losses from CDOs as credit ratings were slashed and sapped demand for the securities. The volume of CDOs sold in the first half of the year amounts to just 10% of sales in the same period of 2007, the Financial Times reported, citing data from Dealogic and Total Securitization.
NAB said the CDOs it is exposed to are currently meeting their principal and interest obligations.
Shares of NAB have declined about 22% on the ASX this year and were recently at A$27.28.
No comments yet
NZAS Sign Long Term Contracts
Amended - IFT230 Maturity and Exchange for IFT350
Synlait forecast milk price update
Chorus submits 2023 fibre regulatory report
Infratil Infrastructure Bond Exchange Offer opens
May 31st Morning Report
NZAS and Mercury sign long-term agreement, creating opportunity for future investment in renewables
Meridian and NZAS sign long term contracts
ArborGen Holdings Results for Year Ended 31 March 2024
BAI - Full unaudited results to 31 March 2024