National Australia Bank and
ANZ Bank are seen as the two big banks most likely to announce further write-downs to their structured credit exposures according to a
Citi report.
The Australian reports that the warning comes less than two months after NAB surprised the market with a $830 million provision against a $1.2 billion collateralized debt obligation portfolio, which contains some $360 million in US sub-prime assets.
NAB is estimated to have about $15 billion worth of conduit assets, with about $9 billion originated by the bank.
But concern is mounting about its $4.5 billion of purchased CDOs -- assets bought to start the conduits, mostly AA or AAA-rated.
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