Following the surprise election of Donald Trump as the next President of the United States, bond markets around the world have been sent into chaos. With many of Trump’s policies reflecting a pro-growth agenda, inflation expectations (a primary driver of long term interest rates) has surged taking both the Australian and US 10-Year government bond yield along for the ride. [...]
In Australia, many investors fail to reap the benefits of geographical diversification. The international fixed income market is more than 10 times larger than the Australian market and offers a greater variety of sectors and industries. As foreign fixed income instruments are generally denominated in the base currency of country of origin, the primary deterrent of international fixed income is [...]
On the 21st of November 2016 Insurance Australia Group Limited (IAG) announced a new transaction (click here for announcement), IAG Capital Notes (Prospective ASX Code "IAGPD"). The purpose of this transaction is to provide regulatory capital for the group but more specifically it will be treated as Additional Tier 1 (AT1) capital for regulatory purposes. These securities are structured as perpetual, [...]
With the September bank reporting season now complete, several common themes have emerged across the sector that we expect to continue to play out over the next twelve months. Earnings increase but margins remain under pressure and growth targets lowered. Although cash earnings for Australian banks remained robust during 2016 revenue growth is becoming difficult, suggesting the earnings cycle may [...]
With ~$4.7 billion of net issuance of ASX-listed debt and hybrid securities in 2016, investors have not been short of supply but with three large-scale hybrids due for redemption before years end, where will this maturing capital go? Figure 1. 2016 Transactions Date Ticker Issuance ($m) Replaced ($m) Net Issuance ($m) 30-Mar-16 CBAPE $1,450 PCAPA - $1166 $284 7-Jun-16 PPCHA $100 PPCG [...]
In a recent independent report written by the Australian Centre of Financial Studies and Monash Business School, investment options for those close to retirement were examined against the backdrop of a low-return investment environment. As the ‘baby boomers’ approach the end of their working lives, there is growing concern current low rates of return will be insufficient in providing retirement [...]
Back in February 2016, trading margins of ASX-listed hybrid securities widened significantly. As a result, there were a number of attractive investment opportunities and following a relatively stable reporting season and shift in sentiment, margins began to retrace. While on the surface it appears margins are still tracking well relative to February, a more suitable performance measure would be to calculate [...]
Who should pay for research use when making investment decisions? For a number of years market stakeholders have debated “unbundling" brokerage and research fees stating it promotes competition and transparency. Typically, in Australia, investors pay a flat percentage rate to trade and receive research (and, for professionals, access to company executives via meetings). In a world where the cost of [...]
The PaperlinX story never ends and continues to find its way into the media. For those who do not know, the PaperLinX Step-Up Preference Securities (ASX: PXUPA) initially listed in March 2007 and has been one of the worst performing securities in the ASX-listed debt and hybrid market over the past decade. The underlying entity, PaperlinX Limited, was hit hard by [...]
The BondAdviser Corporate Hybrid Handbook 2017 is designed to be a useful reference for ASX-listed corporate hybrid securities and the credit profiles of their underlying issuers. We believe there are a number of attractive investment opportunities across different corporate industries and the recommendation table below reflects our views on these particular securities. Corporate hybrids are overshadowed in a market dominated [...]
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An employee-owned financial services provider focused on the Debt Capital Markets.
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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.
