In its third quarter trading update NAB provided an update on its strategy but nothing that materially changed our view on them as an issuer. The capital planning questions were largely covered with the recent capital raising (core tier 1 ratio stood at 9.94% and we expect a ~0.50% increase post the sale of GWB and the NAB Wealth reinsurance placement) but the UK exit [...]
Reporting season kicked off this week with Suncorp, Genworth and Bendigo Bank being the primary issuers of note. Expectations of this reporting season are variable with the investment community focusing on the banks reaction to new capital rules and bulk commodity / energy producers reaction to volatile swings in commodity prices. Suncorp produced a solid set of results as Partick Snowdon announced farewell [...]
ANZ announced today a fully underwritten institutional share placement to raise $2.5billion and a shareholder share purchase plan to raise around $500 million. The reason behind this capital raising is in response to the FSI recommendations and what ANZ describes as a "surprise" to an "accelerated timetable" of the change to risk weights on residential mortgages. This capital raising is not unexpected [...]
Earnings On 5 August 2015 Genworth Mortgage Insurance Australia Limited delivered its 1H 2015 result delivering a gross written premium (GWP) of $285 million, down 9% on a proforma basis as a result of low mortgage originations in the high LVR sector. Turning this into profit, the group experienced a net earned premium (NEP) of $265.7 million, up 3.7%. This was broadly in-line with [...]
Group Earnings Suncorp Group reported a full year 2015 cash earnings of $1,191m, down 8.7% from $1,304 million. This result was broadly in-line with market expectations despite the financial impact of the group’s worst year of natural hazard events which saw the allowance of $595m dwarfed by the final net impact of $1,068m. Headline numbers look solid but the composition of core earnings is [...]
Fear has set into all risk markets in the past week as the possibility of Greece not fulfilling its obligations (note the difference from defaulting which according the Credit Rating Agencies is reserved for private creditors) became a reality. All markets have suffered but as you would expect in a flight to quality scenario the further down the capital structure you are [...]
Over the past few months there has been a significant amount of press about a “global bond market rout”. While this topic is justified it is isolated to certain product types (i.e. fixed rate bonds), so what might seem risky to some is not risky to others. For this reason we believe it is critical for Australian income investors to [...]
The debt and hybrid market has picked up steam over the past few weeks in terms of deal flow with Bank of Queensland, Australian Natural Proteins, Heritage Bank and SCT Transport all coming to market (note that these securities were all offered to wholesale investors only). But the US and European wholesale markets continue to be preferred options for borrowers of senior debt as price [...]
The retail market has been fairly quiet over the past few weeks in terms of deal flow with Bank of Queensland and Australian Natural Proteins (high yield unrated transaction) being the only issuers worthy of note. The US and European wholesale markets continue to be preferred options for borrowers of senior debt as price and term options are more favourable there. With 27 days to go [...]
Over the past month we have witnessed a sell-off in the fixed rate bond market as the process of normalising long-term bond yields continues across the globe (this can be partially attributed to fears of deflation in Europe). However, over the past week the bond sell-off seems to have stalled as US economic data releases were patchy and Greek policy issues caused a slight flight to quality to bonds [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
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.
