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Matt Haupt, Portfolio Manager at Wilson Asset Management, isn’t excited by the banks is the current market. “We’ll have zero exposure to the banks. We still don’t think there’s any reason to own them at this point in the cycle.” Despite expectations, bad debts only rose marginally in the recent results, with most of this being from a limited number of major corporate exposures (e.g. Dick Smith & Arrium). “We’re at all-time lows on bad debts; around 17 basis points. They should be around 40 to 50 basis points over time.” He expects another round of capital raising as the banks are around $15b-$20b short on capital; this could present an opportunity to enter at a discount. Watch the full interview below:


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