Despite market sentiment, we believe there are growing risks to credit spreads of financials. This is technical in nature rather than fundamental. After successfully trading beta on subordinated financial bonds and hybrids, the repricing of senior spreads following the roll-off of the Term Funding Facility means we now look to underweight the largest component of the AusBond Credit Index. Non-financial [...]
Fixed Income Research Investment Strategy Bird of Prey Nowhere to be Seen With spreads largely at all-time lows and sourcing real yield proving problematic, asset allocation is challenging for those with constrained mandates. Flexibility in this environment is key; we are still finding ample value in the market, but much of this is capital, not carry based. Although the RBA [...]
Fixed Income Research Investment Strategy At the Breakdown: Fixed Income State of Play We have deep dived into fixed income markets, searching for value before the ruck forms. Despite an awfully weak inflation print, we have little faith in the long end, believing more is needed to understand if pricing pressure is indeed transitory. Ultimately, we believe the RBA will [...]
Fixed Income Research Investment Strategy Ark of the Covenant Jock! Start the Engine! The longer the rout in global bond markets continues, the more difficult it will become for central banks to control. We continue to believe the US and domestic economy will firmly rebound and that the tide has turned for duration. The current predicament for central banks [...]
Fixed Income Research We’ve Been LIT Up But Will We Return to NAV? That is a hard question to answer, but there is still a lot of meat on the bone here – both in terms of capital upside but also cash yield. Overall, debt focused Listed Investment Trusts (LITs) have performed well from March lows. Cash distributions have [...]
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 [...]
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 [...]
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) [...]
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) [...]
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 [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
© Bond Adviser Pty Ltd ‧ ASFL 456783 ‧ ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
© Bond Adviser Pty Ltd ‧ ASFL 456783
ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
