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The DIY APRA-Inspired Prudential Stress Test

It’s APRA’s job to make sure the banks continue to operate and so it stress tests their capital reserves to understand how they would perform under various scenarios. While the news is worrying, I think we can learn from the stress testing APRA routinely performs on the banks. In fact it makes very good sense to routinely ‘stress test’ your own investment portfolio.

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Oil At $50 Barrel In 2015

The head of Russian oil group, Rosneft reckons global oil prices will drop under $US60 a barrel in early 2015 – the way prices are going it could happen before the end of this year – but there will be an awful lot of nervous oil company boards, managements and shareholders hoping that doesn’t happen – especially in the buoyant US shale oil sector.

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Manipulating BBSW Is A Thing Of The Past

Readers will be familiar with headlines over the last couple of years concerning banks in Europe manipulating Libor. Recently the story has taken on a far more local flavour as ANZ revealed that seven traders caught up in investigations by the ASIC into possible manipulation of the Bank Bill Swap Rate had stepped down. ANZ told the ASX after the market had closed that it was “continuing to co-operate” with an ASIC investigation into historical trading in the BBSW market.

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