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Category: Weekly Highlights

Weekly Highlights

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…Read More

Weekly Highlights

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…Read More

Weekly Highlights

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…Read More

Weekly Highlights

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…Read More

Weekly Highlights

Global markets remained resilient last week as the UK election result and former FBI director James Comey’s testimony failed to deter investor sentiment. While the British pound was weaker against most major currency pairs, broad market indices (both equity and credit) were left relatively unscathed. This week, the Federal Reserve is expected to raise US…Read More

Weekly Highlights

Long term treasury bond yields continued their downward trajectory last week following weaker-than-expected US labour force data and heightened geopolitical risk. However, a series of British terror attacks prior to the UK election next month and reports of missile tests in North Korea have failed to deter global equity markets which remain buoyant. The RBA…Read More

Weekly Highlights

Investors were given a well-needed boost in confidence by last week’s Federal Reserve minutes which left the door wide open for a rate hike next month. The final piece of the puzzle will be the US jobs report this Friday but given the US economy is nearing full-employment, we believe productivity rather than jobs added…Read More

Weekly Highlights

Broad market confidence took a turn for worse last week as allegations surrounding President Trump spooked investors. The allegations are another pothole in the road to success for implementing stimulatory policies and this in turn effected implied inflation expectations in the US (from high of 1.90% to low of 1.78%). As a result, equities sold…Read More

Weekly Highlights

Last week’s Federal Budget was given a meaningful shake up from the prior year with previous (“zombie”) budget measures abandoned. The Government succumbed to suggestions from the Reserve Bank of Australia (RBA) that fiscal policy needs to be a key theme in Australia’s economic plan by announcing a pipeline of key infrastructure projects across the…Read More

Weekly Highlights

As Westpac today rounds out official bank reporting season, our focus quickly shifts to tomorrow’s Federal Budget and the subsequent implications for debt investors. While the RBA and interest rate market have been in ‘watch and wait’ mode for the most part of 2017, recent economic releases have illustrated an uncertain future for the economy…Read More