Safe from subprime?
Apart from a couple of notable exceptions, Australian institutions appear to have weathered the subprime storm better than most. But valuations have been cut and caution reigns in the country's financial community. By Marion Williams
Australian investors have so far been hit hard three times by the US subprime loans debacle and the ensuing liquidity crisis for leveraged credit structures. Just one of Australia's publicly known incidents involves a collateralised debt obligation (CDO) with exposure to US subprime loans. The other two relate to investment through structured credit investment manager Absolute Capital and hedge fund Basis Capital, both Sydney-based firms. On the whole, the countries' institutions seem to have
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