Will The Royal Commission End The Leverage Obsession?

July 2018 Newsletter | Australians appear to be addicted to leverage. Specifically, housing leverage. In 23 of the last 25 years, Australian household leverage has increased. That is, the average household has borrowed more money for the same dollar of income. The debt to income ratio has continued to rise, with only occasional pauses. Will this continue into perpetuity? In this edition we discuss housing credit growth and assess a few potential implications of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.