The RBA cash rate remained unchanged in last Tuesday’s August board meeting at 1.50% but as expected. As a result, markets were broadly stable and it is likely a rate hike by the Fed will be needed to the depreciate the resilient Australian dollar rather than further rate cuts by the RBA. In more interesting news, the 10-Year Australian [...]
Domestic markets are pricing in almost no chance of a cut to the cash rate tomorrow as the RBA have re-entered the “wait and see” game with the US. With August’s rate cut having almost no impact on the Australian dollar (and rather fuelling property prices), the RBA are now much more cautious of deploying conventional monetary policy and it [...]
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 [...]
Interest rate markets were surprisingly dull last week. US Federal Reserve chairman Yellen spoke at Jackson Hole and the reaction was reasonably muted. Comments from other members varied but the message was that timing of the next move is not that important and the key reason why rates haven’t been lifted to date is low inflation. A September hike in [...]
The stability of markets continues to amaze post Brexit which in hindsight was a buying opportunity. However, political and economic risks remain high in Europe and we doubt credit markets will continue to tighten (prices going up) consistently over the next financial year. Currently trading margins are at (or close to) their lows for the past 12 months and it [...]
No major change to interest rate expectations last week but interest rate markets across the globe remain very sensitive to data releases. This week we expect to get some insight into US interest rate policy as July minutes are released but US interest rate futures markets remain skeptical of any increase in 2016. Domestically the focus this week is on [...]
Credit markets remained resilient last week and the major banks took advantage of strong market conditions to issue significant amounts of senior unsecured debt. The offshore primary market activity was dominated by Westpac’s bumper multi-tranche USD $5 billion offering but ANZ also stepped into support the local market to issue $2.7 billion. To us this suggests that institutional demand for [...]
GPT Group posted strong half yearly results with Net Profit After Tax (NPAT) of $586.4 million, up 39% over the last 6 months. Funds from Operations (FFO) grew 6.1% and the group declared a dividend distribution of 11.5 cents per security, up 4.5% over the same period. This growth was mainly driven by positive revaluations (over $380 million), particularly in [...]
Westpac Banking Group’s Chief Executive Officer, Brian Hartzer, provided markets with an unaudited third quarter 2016 financial year (3Q16) capital and asset quality update. The key take-outs were: Capital – As at 30 June 2016 WBC’s Core Tier 1 (CET1) ratio was 10.1% (~0.40% lower than March 2016 due to payment of the interim dividend), the Tier 1 ratio [...]
Interest rate markets across the globe remain very sensitive to data releases. We continue to believe that the shape of our yield curve will be subject to what is happening with US monetary policy. However, it is getting more difficult by the day to see light at the end of the tunnel for domestic policy and where the end of [...]
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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
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