The rationale is that if MS already held ABS it would have been possible to sell ABS for a profit until the SP fell to $1.15 knowing that replacements would soon be available via arrangements with ABS Eddie. As with many other instos MS could also have gained commissions via covered shorting - in itself the target of numerous reports in The Australian earlier this year. Of course Challenger has also exited ABS, adding to selling pressure.
IMHO doubt & acrimonious feeling has evolved because of the lack of transparency & fairness that characterises our boarse. Normal investors just don't know who is involved, but of course some do know & can therefore use that knowledge to advantage.
IMHO off market deals such as covered shorting should be banned & all transactions made known to the market.
4YIO - NFA
ABS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
