Last Friday the latest European bank stress test results were released. The test covered 51 European banks from 15 European Union (EU) and European Economic Area (EEA) countries and were designed to highlight potential capital shortfalls under both mild and severely stressed economic conditions. The macroeconomic scenarios assumed were that the EU real GDP growth rates over the three years [...]
In recent weeks, the downfall of Eagles Boy Pizza has been a hot topic in the world of food retailing. On the 14th of July 2016, the third-largest pizza chain (behind Domino’s and Pizza Hut) was placed into voluntary administration among growing debt concerns and a highly competitive landscape. While all Eagle Boys store continue to trade, the national franchise [...]
On the 3rd of August 2016, Seven Group Holdings (ASX Code: SVW) announced the on-market purchase of up 10% of TELYS4 (ASX Code: SVWPA) subject to market conditions. The group intends complete this over the next 12 months. Over the past 12 months Seven Group has undergone an extensive share buy-back as part of their capital management strategy. To [...]
Last week saw the critical release of Australia’s inflation figures for the second quarter of 2016. The Consumer Price Index (the primary inflation measure) rose by 0.4% quarter-on-quarter which resulted in an annual inflation rate being 1.0% (a 17-year low). Average underlying inflation was down to 1.5% the lowest in the entire 20-year series. The lower import and producer prices [...]
Last week equity and credit markets continued their rally with US equity market leading the way. The S&P500 remains near its all-time high driven by better than expected earnings and a lower probability of a Federal Reserve interest rate increase. Technology companies (Google, EBAY, Microsoft) were the primary driver climbing more than 7.8%. This rally was sustained for most [...]
Over the past year Australian companies have been effected by changing regulation, falling interest rates and currency, sharp drops in commodity prices, an economy in transition and last but not least the uncertainty surrounding Brexit. In our outlook, we hope to address some of these issues from a fixed income perspective. Click here for the outlook.
Last Tuesday, the minutes of the RBA July meeting revealed that inflation remains the major factor pertaining to further rate cuts. Price growth for the June quarter is scheduled to be released on the 27th of July (Wednesday) and may give the board the excuse it needs to cut the cash rate to a new low of 1.50%. The report [...]
Last week was once more characterised by risk on for Australian and global equity investors. In the US, the Dow Jones Index and S&P500 reached all-time highs of 18,595.03 and 2175.03 respectively whilst locally the S&P/ASX200 Index returned 1.26% over the week after reaching a 12 month high of 5,512.397 points on Thursday. Despite the rally in equities, the [...]
At the end of February, we published “Term Deposits – Past, Current and Future Trends” outlining our expectation that term deposit margins would increase due to competitive pressures between Authorised Depository Institutions (ADIs). Since the commentary was written, term deposit margins have indeed risen by ~0.20%. Figure 1. Term Deposit Spreads Source: RBA, AFMA, BondAdviser As shown in [...]
Over the first half of 2016 the four major Australian banks have issued ~A$4.65 billion of domestic and US$1 billion of offshore hybrids. In a globally low interest rate environment, these issues have been well supported by investors and this is reflected in the movement of the average hybrid trading margin over 2016. Figure 1. AT1 Average Trading Margin [...]
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.
