The model portfolio return over the 2015-16 financial year was +4.24%, strongly outperforming the benchmark return of +1.98%. In terms of individual exposures, the portfolio benefited from positive contributors to performance from the Suncorp Convertible Preference Shares II (ASX Code: SUNPC), ANZ Convertible Preference Shares 3 (ASX Code: ANZPC) and the AMP Subordinated Notes 2 (ASX Code: AMPHA), contributing [...]
The concept of liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without having a material impact on price. Similarly, bond market liquidity refers to the extent to which the bond market allows assets to be bought and sold at stable prices. Cash or cash equivalent securities are the most [...]
In recent weeks, one of Australia’s biggest hospitality groups, Keystone Group, has gone into receivership. Keystone Hospitality runs 17 establishments across Australia and employs around 1200 people. Although a private company, the company’s fall highlights some important lessons in debt management. The Keystone story is a case of the company that grew too quickly. Two years ago, the group [...]
With the prospect of further political instability in both the lower and upper houses of parliament, the credit rating agencies may finally lose patience and place the Australia’s ‘AAA’ credit rating under formal review. Both major parties are in the process of negotiating with the minor parties and independents in the wake of Saturday's knife edge result and as a [...]
Following Britain's recent decision to leave the European Union, we expect monetary easing to be on the agenda for most central banks. While countries such as the UK and Japan have already used most of there firepower, Australia still has room to move at the current cash rate of 1.75%. With the possibility of deflation already pressuring the RBA into [...]
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 [...]
The Elders Hybrid (ASX: ELDPA) story is an interesting one as it highlights the complexity of capital management. Following Elders’ announcement last week to undergo an equity capital raising to facilitate the on-market buy-back of its outstanding hybrid securities, we believe it is a good opportunity to revisit Elders’ recent history for future reference in regards to perpetual securities. The [...]
While the Federal Reserve is still planning two rate hikes for the rest of 2016, it kept US interest rates unchanged in last week’s June meeting as Janet Yellen announced that the Fed is “quite uncertain about where rates are heading in the longer term”. Following this, the Fed also lowered its economic growth forecast acknowledging the uncertainty of Brexit [...]
Both domestic and international equity markets started last week weaker as the polls continued to indicate a greater risk that the UK will leave the European Union ("Brexit" referendum to be held this week on the 23th June 2016) but ended on a more positive note as all sides of UK politics temporarily ceased debate over Brexit out of respect [...]
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 [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
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.
