Over the first half of 2016 the four major Australian banks have issued ~A$4.65 billion of domestic and US$1 billion of offshore hybrids. In a globally low interest rate environment, these issues have been well supported by investors and this is reflected in the movement of the average hybrid trading margin over 2016. Figure 1. AT1 Average Trading Margin [...]
On the 6th of July 2016 ratings agency S&P issued a request for comment relating to proposed amendments to Australian Prudential Regulation Authority’s (APRA) evaluation criteria regarding the capital adequacy of banks. Ultimately, the agency’s intention is to begin capturing recent Basel III enhancements that were introduced after the Global Financial Crisis in Pillar 3 bank disclosure statement reports. [...]
Click here to access the BondAdviser Ratesheet as at 20 July 2016
Click here to access the BondAdviser Ratesheet as at 19 July 2016
Click here to access the BondAdviser Ratesheet as at 18 July 2016
While monetary policy divergence between the RBA and the Fed has been the general expectation for most of 2016, global economic conditions are likely to force the Fed to postpone any potential rate hike until next year while many market commentators are forecasting two cuts to the RBA cash rate by year end. However, as the RBA has reiterated [...]
Last week was characterised by risk on for Australian and global equity investors with bond market yields rising (10-Year Australian Government Bond Yield ending the week ~10 basis points higher in yield at 1.985%). Last week also saw the release of an array of domestic economic data: - Australian June labour force numbers with employment rising by 7.9k following [...]
Click here to access the BondAdviser Ratesheet as at 15 July 2016
Major bank tier 1 hybrids have continued to rally over the past fortnight as markets have shrugged off the spike in market volatility experienced directly after the 23rd June Brexit vote. The Westpac Convertible Preference Shares (ASX Code: WBCPC) have had the largest compression in spread (0.84%) followed by the NAB Convertible Preference Shares 2 (NABPB) compressing by 0.63%. [...]
Click here to access the BondAdviser Ratesheet as at 14 July 2016
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An employee-owned financial services provider focused on the Debt Capital Markets.
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