PIMCO is a big, huge manager of money, and they are a wee bit concerned on Australia
- "We have grown more cautious with the external credits of Australian banks,'
- "The probability of a market-moving agency downgrade that causes major banks to lose their AA- rating for the first time in history is now higher than before.''
What has got 'em worried?
- housing price falls (following stricter lending standards and well, high prices)
- debt servicing costs have begun to rise (3 of Australia's big 4 banks raised some mortgage rates)
- Tighter credit and a slower housing market will weigh on household consumption
