Research.

15 Dec, 2019

Term Deposit Review – November 2019

By |2021-09-24T17:39:02+10:00Dec 15, 2019|Deposits, Market Commentary|

Activity proved considerably more muted in November, with the RBA electing to leave the cash rate unchanged at 75 basis points.  Rate momentum slowed after a difficult month for depositors, with less pressure on banks to preserve margins.  While the RBA Board has signaled a willingness to lower rates further in 2020, the rate environment for the moment remains largely [...]

7 Nov, 2019

Term Deposit Review – October 2019

By |2021-09-24T10:43:34+10:00Nov 7, 2019|Deposits, Market Commentary|

October proved to be another active month for the TD market and again a very poor month for TD investors as all banks bar one, slashed offerings across all tenors in reaction to the RBA’s subsequent rate cut, which saw the cash rate lowered by 25 basis points to 0.75%. In the short term (ST) market, BOQ (-0.05%) continued to [...]

10 Oct, 2019

Term Deposit Review – September 2019

By |2021-09-24T10:43:34+10:00Oct 10, 2019|Deposits, Market Commentary|

September proved to be a busy month for the TD market and a very poor month for TD investors, with all banks slashing offerings across all tenors in anticipation of the RBA’s subsequent rate cut, which saw the cash rate lowered by 25 basis points to 0.75%. BOQ (-0.35%) and BEN (-0.30%) led the way, aggressively cutting their short-term (ST) [...]

10 Sep, 2019

Term Deposit Review – August 2019

By |2021-09-24T10:43:34+10:00Sep 10, 2019|Deposits, Market Commentary|

August saw forecasts for the RBA cash rate slashed further, in response, lenders have consolidated in cutting their Term Deposit (TD) offerings. Whilst some lenders, in a bid to attract to market share, initially maintained some value for savers, these strategies have proven unsustainable as we saw 16 rate reductions in August across all three tenors.  In the short-term (ST) [...]

13 Aug, 2019

Term Deposit Review – July 2019

By |2021-09-24T10:43:34+10:00Aug 13, 2019|Deposits, Market Commentary|

July was another strong month for markets, with gains in all major indices driven by the building wave of accommodative monetary policy globally.  The ASX200 soared to an all-time high during intraday trading late in the month, posting a gain of 2.47% for the period, as lower interest rate expectations and record-low yields supported growth.  The positivity will be tested [...]

10 Jul, 2019

Term Deposit Review – June 2019

By |2021-09-24T10:43:34+10:00Jul 10, 2019|Deposits, Market Commentary|

The major market indices experienced a strong month through June, benefiting from positive geopolitical developments and an increasingly dovish rate outlook from central banks around the world. The ASX200 reported a robust gain of 3.47%, surging late in the month on the back of President Trump’s announcement that the US will restart negotiations with China. Meanwhile, Australian treasuries broke new [...]

11 Jun, 2019

Term Deposit Review – May 2019

By |2021-09-24T10:43:34+10:00Jun 11, 2019|Deposits, Market Commentary|

Markets continue to suffer as trade negotiations persist, placing Australian firms in a very uncertain environment. The ASX 200 gained a modest 0.3% in May, aggressively retracing gains made earlier in the month and with the first trading day of June being the worst for the year to date. This followed soft credit growth in April (+0.16%), with tighter lending [...]

9 May, 2019

Term Deposit Review – April 2019

By |2021-09-24T10:43:34+10:00May 9, 2019|Deposits, Market Commentary|

Markets rallied further, continuing the theme of 2019 with the ASX200 up 2% over the month and a tightening of 9bps and 1bp occurred in the Australian iTraxx and Sovereign curves respectively. On the domestic front, there was mainly negative news for savers as first quarter inflation printed exactly flat at 0.0%, significantly increasing the implied probability of two RBA [...]

18 Apr, 2019

Another Peril of Vertical Integration – URF

By |2021-09-24T10:43:35+10:00Apr 18, 2019|Bonds, Case Study|

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. In isolation, the initial premise [...]

4 Apr, 2019

Yield Parity, Not Risk Parity

By |2021-09-24T10:43:35+10:00Apr 4, 2019|Bonds, Case Study|

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 assets, the 10-year government bond [...]