Beware the Australian property correction
The US Federal Reserve (the Fed) lifted interest rates to 2.25% as was widely expected in September and commented that monetary policy is no longer ‘accommodative’. Show More
australian government bonds
The important factors at play in today’s bond markets
The most important factor driving bond markets is the direction of global Central Bank short-term interest rates, as many of them are attempting to normalise rates in a post GFC era. The challenge is to achieve this without roiling capital markets, as we are late in the global business cycle,... Show More
The increase in the global cost of capital to bite
The US Federal Reserve raised interest rates by 0.25% as expected to the upper band target of 1.75%, 0.25% higher than that of the RBA cash rate. The Fed rationalised the increase noting the strengthening of the economic outlook in recent months. Show More
Higher funding costs to be a huge problem for lower quality assets in a highly leveraged world
The volatility genie has now been released and is unlikely to go back in the bottle as late cycle fiscal expansion in the US combined with higher global funding rates from the US Federal Reserve will have markets on their toes going forward. Show More