ABE Weekly 28/10/2020 Market Update AUSTRALIAN BOND EXCHANGE LAUNCHES NEW ENHANCED YIELD NOTE – PALLAS CAPITAL 7.5% 2024 This week’s highlight is the launch of a new issue by Pallas Capital of a 7.5% Fixed Rate Note maturing in 2024 with ABE as lead manager. The initial deal is set to raise $30m and quite possibly based on demand be [...]
ABE Weekly 14/10/2020 Market Update “Be fearful when others are greedy and greedy when others are fearful” - Warren Buffet Consumer sentiment in Australia surged 18% in September, coming off an extremely weak 79.5 read in August when Victoria moved back into lockdown and consumers were clearly fearing similar outbreaks in other states. On a positive note [...]
ABE Weekly 07/10/2020 Market Update “It is what it is” It’s funny, the above quote says a lot and nothing at the same time but is probably one of the most used quotes at present. Most recently it was used to describe the COVID situation in the US but as far as the bond market is concerned “it [...]
ABE Weekly 30/09/2020 “When in doubt do nothing” Market Update So here we go again, another week rolls by and Christmas decorations are already going up and its only September. On the home front it’s all about the next RBA meeting and the budget both of which are on the 6th of October. You can boil down the likely [...]
ABE Weekly 23/09/2020 Market Update “If you’re not confused you don’t know what’s going on” – Jack Welch There could never be a more appropriate statement to describe the current global situation as it relates to economics, politics, and most of all what the post COVID world will look like. It is hard to keep positive in the current environment, but we need to. For the past few months, we [...]
ABE Weekly 06/09/2020 Market Update “Be so good they can’t ignore you” - Steve Martin The new world order of Government control and Central Bank intervention continues across the markets! The FT reported this week that FX is now becoming the new playground for bond traders given central banks have continued selling free puts, strongly reducing trading opportunities in fixed-income markets. As we all remember, bond markets went into meltdown [...]
ABE Weekly 09/09/2020 Market Update A wise man once said “Yesterday is history, tomorrow is a mystery, today is a gift that’s why they call it the present” Well, despite the push back from manyeconomists, the prospect of negative interest rates in Australia is drawing all the closer. Bloomberg reported recently in a survey of 11 economists that 7 are expecting the RBA to boost bond [...]
ABE Weekly 02/09/2020 Market Update The big global headline this past week was the annual US Fed meeting in Jackson Hole where the future of US monetary policy was outlined. That said, they didn’t really say anything the markets didn’t already know namely low rates to remain for the foreseeable future and an allowance of higher inflation – which further strengthened the view that Central Bankers around [...]
ABE Weekly 26/08/2020 Market Update It has been a relatively uneventful week in the global markets. On the home front, the situation in Victoria is improving however, it is still a long way from some form of normality and the state continues to be in lock down. It is a tough situation and a very fine line balancing health vs the economy? At this stage, boarder closures seem to be the mainstay approach of the state's premiers with the hope to avoid a second [...]
ABE Weekly 19/08/2020 Market Update Bank term deposits are for many investors close to retirement traditionally their primary source of income and recent statistic show that Australian household deposits are now over $1 trillion¹. They are of course particularly popular in these uncertain times because they offer savers less risk and volatility than many other investments. However, at rates of 1% or less they are hardly appealing and are forcing investors to [...]