Following a two-year long rally in trading margins, there has been increasing debate around the valuation (expensiveness) of Additional Tier 1 (AT1) hybrids. This notion refers to the true intrinsic value of these instruments which can be highly subjective among investors. There are many lenses that can be used in deciding whether an asset is either trading at fair value, [...]
Australia has long been a net importer of capital due to a low domestic savings rate and traditionally, Australia has always had a greater focus on equity and property, with debt capital markets receiving less attention. The participant mix of the fixed income market in Australia is also far from diversified when compared to other overseas markets – the supply [...]
On 10th January 2018, financial markets around the world took serious notice of reported “threats” from an unnamed Chinese official to slow down or halt the country’s US Treasury purchases. China, which holds approximately US$1.2 trillion of US Treasuries as part of its US$3.1 trillion in foreign exchange reserves and is America’s biggest creditor, is widely seen to be veiling [...]
Credit Performance... 2017 has been another strong year for the ASX-Listed Debt & Hybrid market with accommodative issuer fundamentals and strong market technical factors (demand and supply). Consequently, trading margins across most securities have marched lower, which has extended the almost 2-year tightening cycle since the last severe sell-off in February 2016. As a result (figure 1), 2017 has been [...]
The seventy-nine year-old luxury handbag retailer Oroton became the latest high-profile victim of the changing retail landscape in Australia, when it entered voluntary administration on 29 November 2017. Its’ stores will continue to trade and employ staff on a business-as-usual basis while administrators attempt to find a resolution, most likely through a white-knight buyer. Oroton first listed on the ASX [...]
In a quiet, yet potentially revealing fashion, an event not seen in the fixed income world for almost 20 years happened this week when US and Australian two-year government bond yields touched at around 1.75% on 28 November 2017. The explanation for this convergence is relatively simple: the Fed ultimately remains on track to raise rates in December and into [...]
Australia lags the world in lots of things and a fully mature, evolved capital market is one of them. We believe that not having one actually saved the bulk of Australia from the worst of the last credit crisis with only isolated, smaller players falling foul of poor investment decisions and fragile funding strategies. A ‘mature’ market is just so, [...]
Earlier this week marked the debut of new wholesale bonds from New South Wales electricity distribution company, Ausgrid (previously known as Energy Australia). The transaction raised $1.2 billion over a fixed rate ($750 million) and floating rate tranche ($450 million), and was the largest Australian corporate issuance since Telstra’s $1 billion issuance (three tranches) in April this year. The 7-year [...]
In recent years, unlisted Queensland sugar milling company Mackay Sugar has come under intense financial pressure. This has been largely attributable to the significant debt pile the company has accumulated over the past decade, which has left management no choice but to explore recapitalisation options. As we would expect with any agricultural company, Mackay Sugar is heavily capital intensive and [...]
For recent decades the Australian life insurance market has been dominated by the major banks and AMP. After a short-lived attempt to expand into Asia by the then National Mutual Life Association of Australasia, Australia has not produced a meaningful and competitive international life insurer. Today, even the big banks are shedding their remaining life insurance arms, making way for [...]
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.
