S&P revised last week Goodman Group's outlook from Positive to Stable, while at the same time confirming its BBB long-term corporate credit rating. The change of outlook is due to the rating agency's assessment that Goodman's financial policy won't be as financially conservative and would be prepared to increase its look-through gearing to 40-45% in certain circumstances. The rating agency [...]
The chase for yield by self managed super funds has been well documented but despite the warnings by regulators, commentators and analysts about further changes to regulations, bank share prices continued to trade well above their long term average (on a price to earnings multiple basis). In a low interest rate environment this demand for yield is completely understandable, but dividends are purely a function of capital [...]
Over the past month we have witnessed a sell-off in the fixed rate bond market as the process of normalising long-term bond yields continues across the globe (this can be partially attributed to fears of deflation in Europe). However, over the past week the bond sell-off seems to have stalled as US economic data releases were patchy and Greek policy issues caused a slight flight to quality to bonds [...]
Last week the Australian Corporate Bond Company formally launched their Exchange Traded Bond Units ("XTBs") offering retail investors access to corporate bonds on the Australian Securities Exchange. This product will change the way investors participate in fixed income markets which were historically restricted to wholesale investors. Here is a list of XTB's available as at 19 May 2015: ASX Code Underlying Bond Underlying Issuer YTMAZJ [...]
The last two weeks have seen a severe decline in the price of bank shares, a steepening in the yield curve and a slight widening in Tier 1 regulated Bank hybrid securities. As an example CBA’s PERLS VII is off 6.5% from its issue price and the common equity is off 15% from its high ($96.30). This gives investors the following yield choices: CBA special deposit [...]
With the spotlight on lower term deposit yields we thought it worth focusing on their liquidity . Essentially, term deposits can be broken before maturity with the issuing bank. There is no broad market determining the price, just a single bank and their deposit pricing systems. The following is a real life example as at 11th May, 2015: Term deposit with major bank yielding 3.3% [...]
After a 39.4% decline in gaming revenue for the month of March and a 35% fall over the first 3 months of the year, the Gaming Inspection and Coordination Bureau of Macau reported a 38.8% year on year decline in gross gaming revenue in April, the 11th consecutive monthly decline. In the first 4 months of 2015, Macau's gross gaming [...]
Over the past week ANZ, NAB , WBC and Macquarie have all reported their half year results and CBA provided a quarterly update. The theme is consistent across issuers with cash earnings remaining strong (although below inflated expectations), asset quality remained relatively stable (with the exception of a couple of outliers) but the key theme has been an increase in [...]
Over the past week we have witnessed a steeping of the yield curve (change in long term rates expectations), the RBA keeping interest rate traders happy with a rate cut, APRA changing the capital rules for banks (good for debt and hybrid investors), major banks kicking of their half year reporting and a few interesting pricing benchmarks. The yield curve relevant to our investor [...]
The Australian Banking sector has had a difficult few days on the sharemarket after APRA's (Australian Prudential Regulation Authority) Chairman Wayne Byres said the recommendation by the Financial Systems Inquiry on increasing mortgage risk weights can be “dealt with sooner rather than later.” To most people this means nothing at all but in technical terms it will make `it significantly harder for banks [...]
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An employee-owned financial services provider focused on the Debt Capital Markets.
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© Sep 30, 2026Bond Adviser Pty Ltd ‧ ASFL 456783
ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
