10 key opportunities/threats for banks

Christopher Joye

Coolabah Capital

In The AFR I reflect on the 10 biggest opportunities and threats for Australia's banks. Excerpt enclosed below: "First, it consistently pays to question not just conventional but also expert opinion. Many sharemarket gurus failed to figure out that the major banks were not leveraged 10 to 12 times, as they claimed, but actually circa 25 times, according to my analysis, which the regulator has since backed. If you want to beat the market through active investment strategies that identify mispriced assets, you must, by definition, capitalise on opportunities where the herd is wrong and you are right...Sixth, the major banks will try, and fail, to innovate – they are far too cumbersome, bureaucratic and consensus-driven to develop genuinely disruptive products that dare to threaten their core businesses. This means there are huge opportunities for nimble competitors that have every incentive to rock the status quo. Keen an eye on challenger banks for superior returns..." Read for free via Twitter here (VIEW LINK)

Christopher Joye
Portfolio Manager & Chief Investment Officer
Coolabah Capital

Chris co-founded Coolabah in 2011, which today runs $7 billion with a team of 33 executives focussed on generating credit alpha from mispricings across fixed-income markets. In 2019, Chris was selected as one of FE fundinfo’s Top 10 “Alpha...

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