ABE Weekly: Have Interest Rates Peaked? RBA Holds Cash Rate Steady Again at 4.1%p.a
Australian Bond Exchange Weekly Update Friday 8th September Key Points RBA Holds Cash Rate Steady for Third Consecutive Month September is Statistically the Worst Month for Equity Market Performance Australian GDP Beats Expectations With a 0.4% Expansion in the June Quarter Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate remains […]
At An Inflection Point – Where Next For Interest Rates?
With last week’s CPI figures showing inflation is cooling at a faster rate than expected, another RBA rate hike seems unlikely (but not impossible) at tomorrow’s meeting. The million dollar question is, where next for interest rates? After 12 official cash rate hikes in 15 months, and with their full impact yet to be felt […]
ABE Weekly: Australian Inflation Cools – Are Rates Headed Lower?
Australian Bond Exchange Weekly Update Friday 1st September Key Points Australian Inflation cools more than forecasts Matildas boost Australian retail sales but growth rate flatlines Rising debt costs in focus for Australian corporates Global interest rates higher for longer? Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate sits at 4.1%pa […]
Interest In Corporate Debt Climbing As Future Fund Doubles Domestic Exposure to $1 Billion
With fixed income assets now offering their highest yields in over a decade, institutional investors are significantly increasing their exposures to the asset class. Just last week Australia’s sovereign wealth fund, the Future Fund, announced it had doubled its domestic corporate debt exposure to $1 billion while AustralianSuper, Australia’s largest super fund also confirmed it […]
ABE Weekly: CBDCs and Corporate Bond Markets Of The Future
Australian Bond Exchange Weekly Update Friday 25th August 2023 Key Points RBA releases CBDC report with input from the Australian Bond Exchange Future Fund doubles exposure to Australian corporate debt to $1 billion Treasury yields slide on weaker U.S. and European PMI data Market Yield on U.S. Treasury Securities: 10-Year Constant Maturity Source: Trading Economics […]
Optimising Client Portfolios In Retirement: The Unique Role Of Corporate Bonds
From goods and services inflation to surging energy costs, a retiring couple today needs more than $70,000 a year to live comfortably, while an individual needs just over $50,000 a year, according to the Association of Superannuation Funds Australia (ASFA). For investment advisers, this underscores the critical importance of structuring and managing multi-asset portfolios which […]
ABE Weekly: Monetary policy offers no shortcuts
Australian Bond Exchange Weekly Update Friday 18th August 2023 Key Points RBA minutes signal a turning point in the fight against inflation The Aussie dollar tumbles to a nine-month low Despite a need for instant gratification, monetary policy offers no shortcuts New ABS data shows Australia has likely dodged a wage-price spiral bullet England may […]
Investor risk appetites – where corporate bonds fit
The 60/40 portfolio model has been a mainstay of the investment world for decades, and for most of that time it has served investors very well. It calls for 60% of a portfolio to be allocated to equities to drive growth, and the remainder to be devoted to bonds to provide stability when financial markets […]
ABE Weekly: Amidst volatility, seek predictability
Australian Bond Exchange Weekly Update Friday 11th August 2023 Key Points Despite a fall in discretionary household spending, some economists think inflation could rise as labour costs increase and unemployment holds steady China’s deflation impacts Australian commodities, as mining turnover takes a hit (down 18.1% YoY) despite a significant rise in Chinese coal imports Fixed […]
ABE Weekly: Bond payouts match stocks for the first time in a over a decade
Australian Bond Exchange Weekly Update Friday 4th August 2023 Key Points The RBA left the cash rate on hold at 4.1%p.a on Tuesday, catching economists off guard, validating markets, and giving borrowers a much needed break. Comments within the RBA’s decision statement have prompted speculation on when the next rate cut will be, likely in […]