Macro
Christopher Joye

We were the first to publicly canvass the near-term possibility of Aussie QE (actually, it was one our investors who encouraged us to dig into this), and an increasingly intense debate on the subject has since been unleashed with CBA publishing no less than 3 reports on QE within about... Show More

Income Series 2019
Christopher Joye

Australians tend to have a lot of cash, property, and equities. There is not much in between. Hybrids, however, generally pay a healthy regular income on a quarterly basis at a substantial spread above the RBA cash rate. Currently, five-year major bank hybrids are paying about 5% pa, including franking.... Show More

Fixed Income
Christopher Joye

We have a special episode of the Complexity Premia podcast out today on the Game of Thrones-style battle between Presidents Trump and Xi over trade, which is intensifying by the day. This is arguably the first true super-power clash that we have seen since the Cold War. We also discuss... Show More

Fixed Income
Christopher Joye

After consulting numerous Chinese and US intelligence, defence and political experts, I believe the probabilities have shifted materially from the benign modal case in which China and the US resolve a trade deal towards much more polarised, or bi-modal, outcomes involving a deal or no deal with each contingency appearing... Show More

Macro
Christopher Joye

The latest episode of Coolabah Capital’s Complexity Premia markets/investing podcast is now live over at Apple here or at Podbean here.In the latest episode we discuss: recent developments in financial markets; the consequences of Scott Morrison’s (unsurprising) election victory for investors; the most attractive parts of the corporate capital structure;... Show More

Macro
Christopher Joye

In my column today I reveal that there are some tentative signs that the Aussie housing market may be already turning with a recovery assured by: an RBA rate cut in June; APRA's decision to slash the minimum interest serviceability rate from circa 7.25% to 6.0%, which we estimate will... Show More

Fixed Income
Christopher Joye

As very active capital structure investors, we are constantly engaged in repricing the absolute and relative valuation levels spanning preferred equity, subordinated (or Tier 2) debt, non-preferred senior (or Tier 3) instruments, senior unsecured bonds, cash deposits, super senior covered bonds, and off-balance-sheet asset-backed securities (ABS and RMBS). It sounds... Show More

Politics
Christopher Joye

In my column today I analyse why ScoMo really won, noting that "during the week I advised my investors, media colleagues and friends that it would not be surprising if Scott Morrison won the election comfortably". Click on that link to read the column or AFR subs can click here.... Show More

No Justin, that is totally incorrect. As I say in my article: "FOFA does not apply to wholesale (as opposed to retail) investors, nor to any normal business issuing shares, senior bonds, subordinated bonds or hybrids (preferred equity) to raise money to fund their operations. In these cases, conflicted commissions are permitted." Nobody is trying to get FOFA to apply to a company issuing debt or equity securities to raise funding for working capital. Where FOFA does apply normally is to all investment products---it prevents people paying conflicted commissions to brokers/advisers to sell investment strategies (ie, funds) to retail investors, though these commissions are allowed for wholesale investors. After FOFA became law, the industry lobbied to have LICs/LITs excluded, and they became exempt. We have since seen fund managers shift capital raising to the ASX so they can use conflicted commissions to raise money from retail investors. Without these commissions, these funds would not raise a fraction of this money through normal FOFA channels.

On Boiler-rooms are back as fundies pay sales commissions to flog their products -