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Author: bondadviser_hd

Another Peril of Vertical Integration – URF

The financial world has been littered with pieces discussing, generally in a distinctively disapproving tone, the true motivations behind the Evans Dixon Group and its New York-focused US Masters Residential Property Fund (URF).  Although we will not completely dissect the strategy’s positives and negatives since inception, there are some very obvious lessons to be understood.…Read More

Yield Parity, Not Risk Parity

Much has been said in recent months about the wider stability (or lack of) within Italian Banking. Likewise, the apparent unpredictability of US markets has also been well publicised.  BondAdviser has provided various comments on both topics in previous additions of Up the Curve, available here. Late last month, following a systemic selloff in risk…Read More

The Bank Bill Swap Rate: Disconnected From RBA Cash?

In our previous post, we discussed the potential impact that a falling interest rate environment falling interest rate environment may have on AT1 hybrids valuations. To summarize that article, BondAdviser does not believe an RBA cash rate cut will have too dramatic an impact on hybrid valuations. Further to this discussion, it feels prudent to…Read More

Research Update: Nufarm Subordinated Step-Up Securities

From a relatively benign main reporting season for corporates, we have been rather active in March as subscribers would already have noted. Most recently and following its own trading update, we provide some thought leadership on the complicated and convoluted outlook for Nufarm Subordinated Step-Up Securities for subscribers here.

Term Deposit Review – February 2019

Markets extended their January gains through February in a month largely dominated by reporting season news. From a rates perspective, caution was preached by both the Fed and RBA – firming their neutral stances on monetary policy. On the domestic front, the RBA further distanced itself from previous guidance, which was posturing that the next…Read More

AT1 Hybrids in a Falling Interest Rate Environment

If you have been keeping up to date with comments about and from the Reserve Bank in 2019, you have almost certainly heard speculation about a possible cash rate cut.  Though the RBA has stated that the cash rate is ‘expected to remain unchanged for a considerable period’, the February shift to a ‘more evenly…Read More

Absorbing the Possible Blow to Imputation Credits

It would be safe to assume that popular search engines have witnessed a dramatic increase in ‘franking credits’ inquiries since the Leader of the Opposition divulged his party’s proposed changes to the scheme a year ago.  Whilst there is still water to go under the bridge on that front, the popularity of Australia’s dividend imputation…Read More

The Value of Independent Research

In the current unsettled times, with the financial and banking sector braced for more active and aggressive regulators and possible sweeping changes to operating models, the issues associated with reliable investor information and recommendations appear more relevant than ever. It is not that transparency from issuers is being brought into question, though it seemingly is.…Read More