NAB … DANGER!!!
NAB, National Australia Bank … came out today, stating:
- National Australia Bank said, it was setting aside an additional A$830 million ($805 million) to cover exposure to U.S. mortgages
- that the provision was on its portfolio of collateralized debt obligations, or CDOs, of securities backed by U.S. residential mortgages.
- The lender said it has now provisioned exposure to U.S. mortgages to a level of 90%(!!!).
- rapid deterioration in the United States housing market
- Although current losses on the assets underlying the CDOs in our portfolio relating to the provision average approximately 2% of the total portfolio, our detailed analysis and recent default activity indicates the portfolio will continue to deteriorate.
- We believe it is prudent to take a full provision now, based on a worst case scenario.
- CDOs were all rated AAA when the bank invested in them.
Let’s see, whether this will have an effect on the yesterday already stopped financial bounce … or should I rather say “intercepted”? 
Today warnings here in Europe from MUNICH RE, HANOVER RE and SWISS RE … AUTSCH …
Technical picture requires after this down-leg of the market at least one more UP-LEG …
Tags: financials, Hanover RE, housing, Munich RE, NAB, Swiss RE
