Equity markets were weaker (ASX 200 down ~1.9%) last week as fear caused a run for the safe haven of treasury bonds prior to the US election. Credit markets were mixed (but marginally wider) following international leads. This morning the interest rate futures market (10-Year Government Bond) is weaker following Fridays release of the RBA Statement of Monetary Policy. The [...]
Last week, domestic inflation data for the September quarter beat expectations with the headline Consumer Price Index (CPI) rising 0.7% quarter-on-quarter versus estimates of 0.5%. More importantly, core inflation (which strips out volatile items including commodities) increased by 0.35% for the quarter and 1.5% for the year which is in line with the RBA’s year-end forecasts. Due to this revelation [...]
In a week where domestic equity markets sold off (down ~2.7%) and bond yields rose to recent highs (~2.40% on 10Y AGB) we were swamped with new company information. The recent change in bond yields is having an effect on a number of companies especially those with earnings or asset values linked to bond yields. There is no greater evidence [...]
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 [...]
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 [...]
On Wednesday inflation data will be released for the September quarter. The previous quarter’s release was a key input in the RBA’s decision to cut the cash rate from 1.75% to 1.50% in August and we expect this week’s release will hold similar weight. While commodity prices will offer some relief to the overall figures, the RBA generally focuses on [...]
Last week the market witnessed a small retracement in bond yields at the long end of the curve (10+ year) as pressure abated. This is partly due to the European Central Bank President talking down rumors of a tapering of the central bank's asset-buying program. This means investors in the recent 30Y Australian Government Bond are now 'in the money' [...]
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 [...]
With the RBA identifying apartment oversupply as a key economic risk and the recent uptick in commodity prices supporting short term growth, markets are now pricing in little probability of a cut to the cash rate next month. All eyes remain on the US as global diverging monetary policy continues to shake financial markets. The Federal Reserve Chair, Janet Yellen, [...]
Last week, reporting season (Q3) in the US kicked off with the S&P500 closing 1.3% lower. Alcoa missed profit guidance on Tuesday and there were better than expected results from a number of US banks on Friday (JP Morgan, Citigroup and Wells Fargo). While only 7% of S&P500 companies have reported thus far, overall sales have beaten estimates and it [...]
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.
