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 [...]
As history has shown, technological advancement is inevitable. Facebook invented the concept of social media advertising, Amazon’s rise of e-commerce power is currently revolutionising the retail industry and share-ride app Uber has permanently altered people's transport options. History has also shown that companies who fail to adapt to technological transitions generally become obsolete. A stark example of this is the [...]
Over the past few years, futuristic car-maker Tesla has grown into arguably the market leader in energy-efficient auto-manufacturing. The group’s equity market capitalisation reached US$45.5 billion earlier this year in March, surpassing Ford’s US$45.4 billion for the first time. However, given the latter boasts revenue and assets of US$151.8 billion and US$238 billion respectively versus Tesla’s US$7 billion and US$22.7 [...]
In the benign economic climate, the technical environment (the forces of demand and supply) continue to dictate valuations in the ASX-listed Debt & Hybrid Market. While trading margins have enjoyed an 18-month tightening cycle on the back of resilient demand, the momentum has undoubtedly slowed in recent months, with minimal net margin gains since January. Figure 1. Average Additional Tier [...]
In July 2017, the UK financial regulator, the Financial Conduct Authority (FCA), which regulates LIBOR, announced that the global base rate would be phased out over the next four years, ending in 2021. Although it is unclear what will replace it. The London Interbank Offer Rate, LIBOR, is the benchmark interest rate that many of the largest banks in the [...]
As we have progressed through reporting season, credit fundamentals have broadly remained intact with strong balance sheets, high liquidity and conservative capital management policies. There have been no material deviations for our investment thesis with earnings being largely credit neutral across the spectrum. However, as always, there have been winners and losers in the equity market, which has highlighted the [...]
On the 3rd August 2017, the Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated civil penalties proceedings against the Commonwealth Bank of Australia (CBA) for ‘serious and systematic non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act)’. Alleged breaches of the AML/CTF Act include failure to perform risk assessment on CBA’s own Intelligent Deposit Machines (IDMs), failure [...]
For retail investors, the opportunity set for listed income securities outside the Bank Additional Tier 1 (AT1) hybrid universe has been contracting for some time now. This has been most prominent for listed corporate securities in which issuance has dwindled since Standard & Poor’s adjusted its ‘equity credit’ criteria in 2013. Under this criteria, corporate hybrid securities were originally classified [...]
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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.
