Last Friday the latest European bank stress test results were released. The test covered 51 European banks from 15 European Union (EU) and European Economic Area (EEA) countries and were designed to highlight potential capital shortfalls under both mild and severely stressed economic conditions. The macroeconomic scenarios assumed were that the EU real GDP growth rates over the three years [...]
On the 3rd of August 2016, Seven Group Holdings (ASX Code: SVW) announced the on-market purchase of up 10% of TELYS4 (ASX Code: SVWPA) subject to market conditions. The group intends complete this over the next 12 months. Over the past 12 months Seven Group has undergone an extensive share buy-back as part of their capital management strategy. To [...]
Over the past year Australian companies have been effected by changing regulation, falling interest rates and currency, sharp drops in commodity prices, an economy in transition and last but not least the uncertainty surrounding Brexit. In our outlook, we hope to address some of these issues from a fixed income perspective. Click here for the outlook.
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. [...]
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%. [...]
Following S&P’s announcement on Thursday that Australia’s outlook had been downgraded to “Negative”, the agency stated on a conference call it would be unlikely that Australia’s “local currency rating” would stay at AAA if the “foreign currency rating” is cut. As a consequence of the outlook downgrade some federal government agencies and the state governments of New South Wales, Victoria [...]
Since 1 January 2013 all Australian Banks regulated by the Australian Prudential Regulation Authority (APRA) have issued hybrid securities (also known as Additional Tier 1 (AT1) capital securities) that include terminology called a non- viability trigger event which is designed to absorb losses in a time of stress while the bank is still a going concern. These loss-absorption triggers allow [...]
On the 15th June 2016 Crown Resort Limited announced to the ASX planned initiatives to “enhance shareholder value”. These initiatives will significantly transform the company balance sheet and provide greater transparency on the underlying assets. Crown CEO said "The proposed demerger reflects the different nature of Crown Resorts' controlled Australian operating assets from its international investments. It will provide [...]
On 10th April 2006 Futuris Corporation Limited (named changed to Elders Limited in 2009) issued perpetual, subordinated, convertible, unsecured notes (ASX Code: ELDPA) raising $150 million. Distributions on these securities are discretionary, floating rate, preferred and non-cumulative. The interest rate margin was set at 2.20% p.a. above the 90-Day BBSW until the First Remarketing Date on the 30th of June [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
An employee-owned financial services provider focused on the Debt Capital Markets.
© Bond 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.
© Bond 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.
