that's a pretty sensational headline on the Reuters piece,...

that's a pretty sensational headline on the Reuters piece, Australian MORTGAGE DEFAULTS TRIGGER imo ….........makes it sound like bond holders are not going to get paid in full , that its a huge event which apparently it isn't, infact its quite common

the "trigger" has happened quite a few times in the past on similar mortgage back securities bonds according to many reports subsequent to that headline.

The fact that they used "default" in their headline is typical of the media being sensationalist. The devil is in the detail and it is fully expected all bond holders in all classes will be repaid in full

for those that didnt see the detail - It wasn't defaults, the facts are that there was 120M left over in a one billion dollars bond which had 4 classes of investors.

Payments are continuing but because a % of the borrowers that make up the balance outstanding are in arrears, as the payments continue to come in they are now paid to the highest level of bond holders first, and once they are paid out then the second and so on,

Most importantly thr bond balance drops to 100M (only another 20 M), a further "trigger" a "cleanup" (again a standard clause), means Suncorp come in an payout the bond to all holders.

As for the idea that RBA will cut twice and sent AUD down, aud gold up etc. - AUD may go down but if the RBa starts cutting and everyone is taking action because growth is slowing or the "bubble" in property (surprised this term is now being used by officials") wont the USD will get a bid pulling gold in USD down?……...