Good Shares to Buy

MacBank Sharply Down

Macquarie Bank (MBL) warned that two of its funds could lose a quarter of their value due to 'price volatility' in the United States (US) senior loans market. Macquarie Fortress Investments director, Peter Lucas, said the fallout from the sub-prime mortgage crisis had created 'supply demand unbalances' in the loans market. While the listed Macquarie Fortress Notes and the unlisted Macquarie Fortress Fund do not have any direct exposure to US sub-prime mortgages, both are highly leveraged. The share price is down nearly 8% to $76.60 in midday Wednesday trading. Later on Macquarie Bank chief executive, Allan Moss claimed this week's sudden downturn in the Australian stockmarket had been an 'over-reaction.' The sharp fall has wiped more than $2.4 billion from Macquarie's market capitalisation. Mr Moss said, 'The Australian economy is in a good shape, the global growth story is basically intact."