after market update

Nicholas Forsyth

A choppy session hit the ASX today however the index fell just -13pts. Not a bad result really given the weakness in overseas markets. The energy sector provided most support with the likes of Santos (STO) up +5.42% to $4.26 and Origin (ORG) up +5.51% to $5.36. Show More

Christopher Joye

In The AFR I argue the Turnbull government has (correctly) paved the way for up to 0.40 percentage points of total out-of-cycle bank home loan rate hikes by both firmly backing the Financial System Inquiry's capital/leverage recommendations, and giving APRA discretion to implement them. One silver lining is that Standard... Show More

Christopher Joye

In The AFR I evaluate one of the greatest long-term threats to conventional banks: the post-GFC revival of "non-banks" and "marketplace" funding, where the latter is also known as "peer-to-peer" (P2P) lending. Ironically, the 1997 Wallis Inquiry into Australia's financial system forecast that banks and their balance-sheets would be largely... Show More

Christopher Joye

In The AFR I present one of my more important analyses of the major banks---a must read for anyone with equities exposure---that tears apart leading analyst forecasts to find an essential Achilles heel at the heart of current valuation models. In short, even the more gloomy analysts like UBS's No.... Show More

Christopher Joye

In The AFR today I address the uncertainty swirling around APRA's finding that the major banks are short 200 basis points of "capital" and speak to a large institutional investor who thinks CBA should take the cheapest equity in history off the table via a $10 billion rights issue. The... Show More

Christopher Joye

APRA's announcement of an increase in the average residential mortgage "risk-weight" applied by Australia's "internal-ratings based" (IRB) banks from 16% currently to "at least" 25% has important consequences for expected returns from bank securities...The substantial increase in equity will inevitably lower the major banks' shareholder returns and close the gap... Show More