Government rejects extending deposit guarantee
Confusion reigns in markets over the government's guarantee on deposits in authorised deposit taking institutions particularly in relation to short-term cash management trusts and similar asset classes, says UBS Wealth Management. The Government is expected to resist further calls to extend the guarantee and has already rejected calls to extend the guarantee to investment products such as mortgage funds. Major banks are expected to shun the government guarantee for some capital products including their bank bills because the cost will lower returns to investors.
Source: The Australian