The wholesale market, accessible for retail investors via managed funds (including ETFs and LICs) offers better cash yields than bank term deposits but at a higher risk. This risk can be managed via a diversified portfolio .
Tag Archives | wholesale deposits
In Cuffelinks on 2 April 2013, we posted an article on bank liquidity. Alun Stevens, Principal at Rice Warner Actuaries, took issue with some of the conclusions, and a lively debate followed. Warning: very long and technical.
The nation’s savings are in superannuation and the nation’s funding needs are in the banks. Yet the regulators and the new liquidity rules make it even more difficult for the two to get together, with another free kick to SMSFs.
* Better and cheaper availability of wholesale funding for major banks will reduce retail term deposits rates, as CBA takes its foot off the gas.