While monetary policy divergence between the RBA and the Fed has been the general expectation for most of 2016, global economic conditions are likely to force the Fed to postpone any potential rate hike until next year while many market commentators are forecasting two cuts to the RBA cash rate by year end. However, as the RBA has reiterated [...]
Last week was characterised by risk on for Australian and global equity investors with bond market yields rising (10-Year Australian Government Bond Yield ending the week ~10 basis points higher in yield at 1.985%). Last week also saw the release of an array of domestic economic data: - Australian June labour force numbers with employment rising by 7.9k following [...]
Following S&P’s announcement on Thursday that Australia’s outlook had been downgraded to “Negative”, the agency stated on a conference call it would be unlikely that Australia’s “local currency rating” would stay at AAA if the “foreign currency rating” is cut. As a consequence of the outlook downgrade some federal government agencies and the state governments of New South Wales, Victoria [...]
Last week was fairly neutral for Australian equity investors but the bond market continued its rally with the 10-Year Australian Government Bond Yield hitting new all-time lows (again) of 1.84%. On Thursday, Rating Agency Standard and Poor’s (S&P) announced it had put the Australia Sovereign Rating on “Negative Outlook”. In essence, this report gives us a 33% chance of a [...]
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 [...]
A week is a long time in markets and equity and credit investors outside of Europe have now all but forgotten the impact of Brexit but government bond yields remain very low. Westpac Capital Notes 4 commenced trading last Friday and traded strongly with $13.4 million trading hands. It closed at $101.54 or a margin of 4.78% (0.12% tighter [...]
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 [...]
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.
