Macquarie Bank notes that spread trends are clearly forming around the effects of QE tapering with a likely impact on the major banks' markets businesses

Macquarie Bank notes that spread trends are clearly forming around the effects of QE tapering with a likely impact on the major banks' markets businesses. According to the broker, NAB and WBC are more exposed to softer trading profits from spread normalisation. Overall, the bank has downgraded earnings for the sector by 0.5 to 1% in anticipation of spread normalisation.