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 [...]
Over the past week, the Australian government bond yield curve steepened significantly as uncertainty regarding US monetary policy continues to drive global interest rate volatility. Fixed rate bonds with a term greater than 5 years rose more rapidly in yield than shorter dated bonds as the generic Australian 10-year bond futures ended the week ~0.22% higher in yield at 2.14%. [...]
Global equity markets ended last week weaker as a number of issues had a negative impact upon investor sentiment. Traders pushed the probability of a US rate hike from 63.9% to 70.2% which was surprising given the weak nonfarm payroll release (US unemployment report) on Friday. As a result, bond markets were also weaker as yields rose with the Ausbond [...]
The Reserve Bank's monthly board meeting is on Tuesday - the first under new Governor Philip Lowe - and is likely to be a key focus for investors in the coming week. While the Australian dollar remains strong, GDP growth is beating expectations, commodity prices have risen and overall economic data remains resilient despite decreased mining investment. As a result, [...]
Last week global equity markets produced mixed returns as concerns surrounding Germany’s largest bank (Deutsche Bank) dominated headlines. The US Dow Jones & S&P500 indices were up 0.26% & 0.17% respectively while Asian and European bourses were down. In Europe concerns surrounding the European banking sector escalated following Deutsche Bank shares falling to an all-time low of €10.25 on Thursday [...]
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 [...]
It has now been over nine years since the U.S. Federal (Fed) Reserve started to ease monetary policy in June 2007 in response to a slowing US economy and the unravelling of the US subprime housing loan market that eventually led to a global credit squeeze and financial contagion. During this period of distress central banks around the globe followed [...]
Consistent with other Australian corporates, Nufarm posted solid results for the 2016 financial year from strong cost optimisation rather than increased product demand as underlying EBITDA rose by 17.2% to $372 million despite only a 2% increase in revenue. However, underlying net profit after tax was hit by the group’s emerging market operations (down 7%) as volatile economic conditions resulted [...]
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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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