Macquarie has called an end to the Big Four banks' yield-driven rally following expectations that the Fed will reduce its QE program. In a low interest rate environment the Aussie banks have been attractive in the past as they pay out the bulk of their profits in dividends. Macquarie analysts Michael Wiblin, Stephen Wood and Elisa DiMarco note that the Aussie banks' share prices have fallen over the past month with room to fall a further 15%. Their view is that the sector was overvalued by as much as 30% and has since pulled back by around 20%. (VIEW LINK)
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