While you may not follow movements in the bank bill swap rate (BBSW), right now they are worth paying attention to. You see, rates are on the rise. And that means the funding costs for our major banks are also going up. This could force them to raise mortgage rates... Show More
Here is the ASX 200 results calendar - the results season is still a couple of weeks away. As usual, it is a best endeavours calendar, some companies simply don’t set a reliable date. The big companies generally do. Show More
Back in August 2015, we wrote an incisive article noting that ANZ’s $2.5 billion placement raising had fallen short. Whilst there was no public confirmation at the time by either ANZ or the underwriters, it was our experience in the market that led us to deduce that the investment banks... Show More
Miners and Banks are the two dominant sectors on the ASX. For the last few years, the miners have done the heavy lifting, and while they are a long way from former highs, there is no denying they've had a good run. Catherine Allfrey of Wavestone Capital says investors are... Show More
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The statistical release of APRA and the RBA’s credit growth data for April shows a stabilisation in the rate of overall mortgage, personal and business loan book growth at 5 per cent across the overall Australian market. By category, mortgage book growth continued to slow, increasing 6 per cent year... Show More
During the Italian crisis there were some big moves in credit spreads overseas, and I've been asked a few times how current ASX hybrid spreads/returns compare to the major banks' hybrids issued in US dollars. Enclosed is a quick summary. Show More
As investors there’s always plenty to worry about, and in our view the reasons to be anxious just got bigger. You’d have to be living under a rock not to have heard or read excerpts from the Banking Royal Commission. Much of this has been unbelievably good theatre, but make... Show More
It would be understandable if investors with large holdings in the four major commercial banks spent much of their time reviewing the recent mixed earnings results and negative newsflow from the Royal Commission. However, the vast amount of negative media and analyst coverage makes it tempting to spend too much... Show More
Our major banks may not be outnumbered nor outgunned in the operational sense but some are clearly not seen to be occupying the moral high ground at the moment. Show More
The market rolled over early this morning on some big volume through the futures market before ebbing and flowing throughout the session. A whimper up into the close but nothing to write home about, the market simply feels a little hot now and needs to some time to cool –... Show More
Financial services have been making headlines for all the wrong reasons in recent weeks. Following Rowena “Shock and” Orr’s public shellacking of the wealth management industry, AMP Limited has since lost almost its entire board of directors, as well as a big part of the executive team. The banks were... Show More
In the midst of the Royal Commission into Misconduct in Financial Services, the major banks have released their latest half yearly results. The market headed into the reporting period with a high degree of apprehension given the public backlash emanating from the revelations coming from testimony at the Royal Commission... Show More
The conclusion of our December 2016 Livewire article read... “Such would suggest that the 2015 peak valuations in the Australian banking sector could indeed have marked the top of a multi-decade cycle for Australian banks. The latent risks confronting Australia’s banks appear significant, suggesting a high likelihood that in the... Show More
The Royal Commission into the Australian banking system has triggered shocking headlines of abuse, particularly around financial advice. But there is a danger that while the inquiry identifies issues and delivers a regulatory response, it doesn’t get to the core of the problem. Show More
Today marked the conclusion of the May profit reporting season, with Westpac finishing the season well with a strong result that was well-received by the market. May has been a kinder month for shareholders in the major Australian banks than March and April, with three of the four major banks... Show More
In our latest 50-page report for funds and institutional investors, Chemical Change, we’ve conducted a detailed consideration of shifts in mortgage lending standards, and the likely outcomes from these changes. Highlighted below are three immediate implications. Show More
“The shipping industry, at some point down the track, will be required to address greenhouse gas emissions” Angela Gillham, CEO, Maritime Industry Australia Show More
The Royal Commission has shown banking, financial advice, and mortgage broking to be sorely lacking on the basics of looking after the customer. It seems that incentives to lend more money and charge more fees were somewhat more powerful than those aimed at improving customer wellbeing. Show More
Another solid performance from local stocks today bucking the negative overseas lead – the Dow Jones down -146pts / 0.61% overnight yet we rallied +0.54% today continuing our recent period of outperformance. The banks the main driver which would have come as a surprise to some (not MM) with the... Show More
The last month has been tough for shareholders in the major Australian financial services companies, who have seen their share prices drift lower throughout March and April. Evidence of misconduct presented at the Royal Commission on Financial Services has fed market fears that bank profitability will be diminished in the... Show More