It was a quiet news week in terms of fundamentals for fixed income markets but economic and technical news continues to flow. Over the past week we have had a very large new issue from ANZ (AUD$2.5billion), minutes released from the US Federal Reserve FOMC meeting, implications from the iron ore price collapse and the AOFM selling their first inflation linked [...]
Over the past few weeks the primary market has seen a flurry of activity with 5 different issuers coming to market. These securities are all different in structure, credit risk and trading terms. At BondAdviser we keep a close eye on the factors driving issuance and give users easy access to monitor the secondary market performance of these securities when [...]
It’s been a quiet few weeks for the Primary Issue Market in the listed space whilst the traditional Wholesale Bond Market continues to see new issuances from repeat and first time issuers. The domestic banks have been very active, accessing funding in Europe over the past few weeks. Coming off the back of a period of volatility, we expect the [...]
There has been a definite drop in turnover this week with sellers beginning to back off and buyers returning to the asset class. Feedback I am receiving from our private bank clients suggests they are unsure where to invest their funds following the quite severe downturn in equities, negative press surrounding hybrids and cash rates continuing to decline. Those investors [...]
This week we have been focusing on a new tactical trade idea for Qantas. We are far from long-term buyers of the Airline sector but we think given the economic environment things might start to improve. A few months ago Qantas finally acknowledged that it has stopped flooding the market with spare capacity to maintain market share. This is positive [...]
The government bond and swap yield curves remain as flat as pancakes as the interest rate futures markets push out any expectation of a rate rise in coming years. This was echoed by Governor Stevens during the week when he said in a speech at the Economics Council “…we expect rates to remain lower for longer”. However, we do think [...]
This week QBE Insurance Group Ltd was rumored to be arranging a series of investor meetings in Asia and Europe about a potential Tier 2 transaction. The question is why they wouldn’t tap the listed retail market? The answer is cost. The listed market continues to be an expensive avenue to issue regulatory capital for institutions, except where they can [...]
Apart from initiating coverage on the airports this week, we have focused our attention on the regulatory capital securities for the insurers (Suncorp Group and IAG). These securities (which are generally listed) experienced some significant volatility in late October following the rating downgrade by Standard and Poors and broad market selling. Our thesis on these securities remains the same – [...]
This week we added eligible securities from the domestic airports to our list. Brisbane, Perth, Melbourne and Sydney airports all have debt securities, which are accessible to retail and sophisticated investors. Broadly speaking, these are very stable businesses that are unlikely to face major earnings disruptions except for natural disaster events and/or terrorist events. The biggest risk is that they [...]
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ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
