ASX hybrid securities are financial instruments listed on the Australian Securities Exchange (ASX) that combine features of both equity and debt securities. These hybrids offer investors a blend of the characteristics of bonds and shares, providing unique benefits and risks. Understanding ASX Hybrids Hybrid securities can take various forms, including convertible bonds, preference shares, and capital notes. … Read more
The Australian Prudential Regulation Authority (APRA) is proposing several changes to strengthen bank capital requirements and liquidity standards in response to the global banking turmoil earlier in 2024. Here are the key proposed changes: Valuing liquid assets at market value APRA is proposing to require banks subject to the Minimum Liquidity Holdings (MLH) regime to … Read more
The performance of the U.S. stock market during an election year is often a subject of significant interest to investors, economists, and policymakers. Historically, the market’s behavior can be influenced by a variety of factors related to the electoral process, including uncertainty over policy directions, investor sentiment, and the potential for changes in economic policy.
Hybrid securities are a unique asset class that combines features of both debt and equity instruments. For investors looking to diversify their portfolios and potentially earn steady income, ASX hybrid securities offer an intriguing option. However, understanding how to trade them effectively is crucial for success in this market. Know what you’re investing InBefore diving … Read more
Interest Rates The rate reversal is gaining momentum with the Fed on a “slower to lower” path if going lower at all. Fed members continue to talk up their pensive stance. 2-year treasuries have rebounded the strongest, trading now at 4.68%, a rise of nearly 60pts since January lows and 5pts last week. The US … Read more
Last week began quietly enough so as not to wake market participants from their delirium in which “Goldilocks” is real and “immaculate” disinflation is possible. All of this fantasy stuff was shattered on Tuesday night when the US CPI results were stronger than expected. This was then compounded by the stronger than expected wholesale inflation … Read more
The Federal Reserve last week, again, left rates on hold at its January meeting with Powell ruling out a March cut but otherwise keeping his dovish tone. The Federal Reserve has been able to move to a hold status for 3 reasons: The rise in the USD while other currencies fell will see a shift … Read more
Investing is very difficult around key pivot points. If it were easy everyone would be getting double returns consistently. After a short lull in the economy over the past 6 months, we expect that some time in the March quarter we will begin to see inflation, or at least the factors that will lead to … Read more
During November the market consensus shifted towards the FOMC and ECB remaining on hold throughout 2024. This reflects a forecast that inflation will continue to deflate while unemployment remains low, and the economy keeps growing but at a slow pace. This is the “Goldilocks” scenario. The alternative view is that inflation will begin to rise … Read more
We were surprised last week by the reaction to the slightly better than expected US CPI monthly report. In aggregate the headline month-on-month CPI rate was flat versus a 0.1% forecast and core inflation was 0.2% versus 0.3% expected. A great deal of care needs to be taken when interpreting monthly data because inflation readings … Read more