Mounting commercial property losses at two overseas lenders within 24 hours triggered a sell-off in local bank shares, as wary investors brace for a rise in bad loans tied to the troubled US real estate sector.
Commonwealth Bank led a decline in the financial sector, tumbling 2.9 per cent to $114.10, the biggest fall in the shares of the country’s largest lender since August. The financial services index fell 1.8 per cent, compared to 1.2 per cent for the ASX 200.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
