Ten Network Holdings Limited (ASX: TEN) shares were suspended for trading on the ASX on 9th June 2017. Its shares closed at $0.16 on the day, down more than 84% from a year ago, after it fell into administration with key billionaire investors, James Packer, Lachlan Murdoch and Bruce Gordon failing to offer their support for a new debt facility [...]
In the past two weeks, the Australian 10-Year Treasury Yield has surged from 2.35% to 2.73%, its most notable move since the US presidential election in November 2016. While financial markets have been expecting higher long term interest rates for most of the year, a recent announcement from the European Central Bank (ECB) surprised investors and ticked another box on [...]
Managing duration risk through active security selection was a key strategy in our model portfolio year-end performance. The BondAdviser Income Opportunities Portfolio returned 7.75% (3.24% above benchmark – RBA Cash Rate + 3.00% p.a.) and the BondAdviser Income Plus Portfolio returned 4.27% (1.26% above benchmark – RBA Cash Rate + 1.50% p.a.) for the year ended 30 June 2017. The [...]
June 2017 Figure 1. Comparable Monthly Performance Source: Bloomberg Figure 2. Monthly Issuance Levels Source: Bloomberg Figure 3. Monthly Credit Floating Rating Note Issuance Levels Source: Bloomberg Figure 4. Monthly Buyback Levels Source: Bloomberg Figure 5. Historical Sector Weightings Source: Bloomberg Figure 6. Credit Quality Composition Source: Bloomberg Note: BBB includes BBB+, BBB and BBB-
As a rule of thumb, we consider Major Bank Tier 2 securities as one of the best risk-adjusted capital investment for investors due to their superior capital structure ranking, non-discretionary interest payments and event of default terminology. Historically, while the retail (listed) Tier 2 market increased post-GFC, there was uncertainty among investors in the wholesale (over-the-counter) market regarding the premium associated [...]
As largely anticipated, the Federal Reserve two weeks ago raised US interest rates for the fourth time since the Global Financial Crisis (GFC). In addition to the rate hike, the Federal Open Market Committee (FOMC) also announced it “intends to gradually reduce the Federal Reserve's securities holdings by decreasing its reinvestment in the System Open Market Account.” This indicates the [...]
At the end of May 2017, sandalwood farming company Quintis Limited (ASX: QIN) was downgraded by Standard & Poor’s into the rarely seen ‘C’ section of the credit rating spectrum indicating immediate danger of credit default. Quintis (which formerly traded as Tree Management Services) is the world’s biggest owner and manager of Indian sandalwood which is a timber used in [...]
Following a relatively benign week in financial markets, broad market indices finished largely unchanged. Long term interest rates continue to trend sideways as investors look at data affecting inflation expectations. Capital markets are expected to remain fairly quiet this week as the financial year end approaches. For credit markets, trading margins continue to grind tighter against an accommodative technical environment. [...]
As largely anticipated the Federal Reserve last week raised US interest rates for the fourth time since the Global Financial Crisis (GFC). The FOMC maintained similar rate forecasts for 2017 and beyond (known as the Fed dot plot) which appear to be at odds with market expectations. The key factor to this divergence has been US inflation which has slowed [...]
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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.
