The outcome of Thursday’s UK referendum took most market participants by surprise, with equity and credit markets significantly weaker across the globe. There was a partial recovery on Friday afternoon from the initial selling but futures markets on Monday morning are pointing to further selling in the UK. Almost all investors except the most conservatively positioned have been effected [...]
Since 1 January 2013 all Australian Banks regulated by the Australian Prudential Regulation Authority (APRA) have issued hybrid securities (also known as Additional Tier 1 (AT1) capital securities) that include terminology called a non- viability trigger event which is designed to absorb losses in a time of stress while the bank is still a going concern. These loss-absorption triggers allow [...]
The Elders Hybrid (ASX: ELDPA) story is an interesting one as it highlights the complexity of capital management. Following Elders’ announcement last week to undergo an equity capital raising to facilitate the on-market buy-back of its outstanding hybrid securities, we believe it is a good opportunity to revisit Elders’ recent history for future reference in regards to perpetual securities. The [...]
While the Federal Reserve is still planning two rate hikes for the rest of 2016, it kept US interest rates unchanged in last week’s June meeting as Janet Yellen announced that the Fed is “quite uncertain about where rates are heading in the longer term”. Following this, the Fed also lowered its economic growth forecast acknowledging the uncertainty of Brexit [...]
Both domestic and international equity markets started last week weaker as the polls continued to indicate a greater risk that the UK will leave the European Union ("Brexit" referendum to be held this week on the 23th June 2016) but ended on a more positive note as all sides of UK politics temporarily ceased debate over Brexit out of respect [...]
On the 15th June 2016 Crown Resort Limited announced to the ASX planned initiatives to “enhance shareholder value”. These initiatives will significantly transform the company balance sheet and provide greater transparency on the underlying assets. Crown CEO said "The proposed demerger reflects the different nature of Crown Resorts' controlled Australian operating assets from its international investments. It will provide [...]
Following the weak non-farm payrolls the FOMC is expected to leave fed funds rate target range unchanged this week. An update to the "dot plot" will be released along with the Statement of Economic Projections. As we have stated before there is a clear difference between the "dot plot" and market pricing. Aligning market expectations with forecasts in dot plot [...]
While domestic markets were broadly stable last week terrorist activity in Orlando and new polls over the long weekend indicating a greater risk that the UK will leave the European Union ("Brexit" referendum is held on 23 June) have caused equity markets to open sharply lower. As a result the flight to quality has meant the Australian Government 10Y Bond [...]
Given the persistently low interest rate environment, the search for yield is becoming an increasingly difficult task. Central banks’ ‘lower of longer’ stance of interest rates has led to exacerbated returns and the timing of a global economic turnaround is uncertain to say the least. The world is in a state of transition. High-growth emerging markets and cutting edge technology [...]
Last week all eyes were focused on US non-farm payrolls (employment data) which delivered an increase of 38,000 jobs (significantly below already low expectations of 160,000 new jobs) while at the same time figures from the last two months were revised down by ~59,000. As a result a rate hike by the Federal Reserve is arguably now off the agenda [...]
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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.
