Following two cuts to the cash rate in May and August, the 10-Year government bond yield progressively decreased for the most part of 2016 as interest rates around the globe reached record lows. However, in the past few weeks, the 10-Year bond has risen in yield significantly from a low of 1.819% at the start of August to reach 2.303% [...]
During the September quarter, the listed interest rate security market performed strongly with credit spreads across most securities tightening as investors continued to seek higher yielding investments against the backdrop of a low interest rate environment. Securities received a boost in August as the Reserve Bank of Australia (RBA) reduced the official cash rate from an already low rate of [...]
Back in November 2015, news came too light that a Brazilian dam owned by a BHP joint-venture had collapsed, fatally injuring a number of employees and damaging nearby communities. This was followed by extensive legal proceedings brought forward by Brazilian government regarding clean-up costs and compensation of BRL155 billion (~AUD $62.5 million). Samarco is a joint-venture between BHP Billiton and [...]
In recent months, Alumina Limited (ASX: AWC) has been media spotlight regarding an ongoing legal dispute with its major business partner Alcoa. Both companies form part of the world’s largest Alumina business, Alcoa World Alumina and Chemicals (AWAC), which is involved in bauxite mining as well as alumina refining and smelting. Figure 1. AWAC Ownership Source: Company Reports In early [...]
Bank hybrids have been issued in the Australian financial landscape for over 20 years in various forms. While drivers of performance have varied over this period, they are typically cyclical and have a recurring impact on security trading margins (albeit at different magnitudes). The focus of the article will be on what is technically known as an Additional Tier 1 [...]
Last month, the Reserve Bank of Australia (RBA) cut the official cash rate by 0.25% to 1.50% with many Australian banks deciding not to pass on the full rate cut to mortgage holders and instead partially maintaining (and in some cases improving) some term deposit rates. In response to media criticism the banks cited regulatory reasons for these actions but [...]
Over the past week Australian government bonds have sold off which was led by overseas markets. In this article we analyse the events that have led to this and the wider implications at play for Australian bond market returns over the next 12 months. While markets have been waiting since mid-2014 for the US Federal Reserve to increase interest rates, [...]
In our second half outlook, “Where to from here?”, we expected Australian companies to report slightly weaker headline results (revenue) with profits remaining relatively stable for period ending June 2016. We also expected an increasing number of them to favour shareholder friendly measures or turn to acquisitions for growth as organic revenue growth will be difficult during a period sustained [...]
On the 17th of December 2015, the Australian Prudential Regulation Authority (APRA) released for consultation a draft version of the Prudential Practice Guide for Capital Buffers (APG 110). On the 30th of August 2016 APRA addressed the key response to this submission. The Australian Banking Association raised concerns over the ability of an Authorised Deposit-taking Institution (ADI) to make Additional [...]
On the 30th of August 2016 Qube Holdings Limited (QUB) announced a new transaction, Qube Subordinated Notes (Prospective ASX Code: QUBHA). The purpose of this transaction is to provide funding for the group but also to help fund the partial acquisition and development of the Moorebank Intermodal Freight Precinct. The indicative size of the offer is $200 million but Qube [...]
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.
