The March 2016 quarter (1Q16) major bank reporting season kicked off last Monday with Westpac and ended with the Commonwealth Bank of Australia this morning. Across the sector profit growth was mixed with both ANZ & the NAB’s headline Statutory Net Profit/Loss after Tax (NPAT) being dragged down by various one-off write downs. Westpac was a picture of stability [...]
In 2014, Quickflix was the market leader in streaming services but has trended downwards since due extreme competitive pressures. Netflix stormed the Australian market last year, followed by Stan and Presto which saw Quickflix sales plummet. This forced the group to restructure their obligations securing a release of $7.5 million of debts with its content providers and were looking to [...]
Rebased Bank Index
The first quarter of 2016 was a tale of two halves for the ASX listed hybrid universe. January started poorly as the Australian share market followed their global peers as a risk-off tone permeated the financial markets. ASX listed hybrids followed suit with corporate issued hybrids faring much worse than their bank issued peers. The risk-off tone continued into [...]
Over the past couple of years there has been increased focus on high yield securities as government bonds have fallen to all time lows. A portfolio of high yielding securities therefore requires an understanding of the different types of securities available. Investors have definitely moved up the risk spectrum into high yield bonds and/or hybrids. While we are not suggesting [...]
Last month Virgin Australia tapped strategic shareholders for $425 million prompting a review of its capital structure to enhance cashflow and profitability. The last time Virgin went to these shareholders was in late 2013 ($90 million) when the aviation industry was facing poor consumer sentiment and high oil prices. Qantas was in an even worse position which resulted in management asking [...]
Trading margins for the majority of ASX listed notes (hybrids) of the four major Australian banks have been rising for most of the past year and a half, the low point being the 18th of August 2014 PERLS VII (ASX code: CBAPD) transaction issued at 280 basis points over swap. The peak in trading margins was reached on the 15th [...]
In late February, the Australia Securities and Investment Commission (ASIC) finally closed the book on the ABC Learning saga as it ended its probe into the collapse of the failed childcare company. As many would remember, ABC was heavily criticised and was placed into administration in November 2008 at the height of the Global Financial Crisis (GFC). Although the GFC was [...]
The Short Term In March Australian sovereign debt delivered a 0.9% loss and was one of the worst performers among global debt markets. The 10-year government bond yield rose from 2.39% to a high of 2.70% and currently sits at 2.50%. As a result, Australia offers one of the highest 10-year yields among sovereigns that have a top grade credit [...]
Despite protests that Australian house prices are not in ‘bubble territory’ the banks and other lenders have begun the process of tightening borrowing standards across the country amid growing concerns about falling prices. Credit has already been restricted to a number of former mining boom towns where oversupply and falling demand have already caused price tumbles and the cancellation 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
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
