Hayne is bad for equity, good for debt

Christopher Joye

In the AFR I write today that one of the most enduring legacies left by the royal commissionwill be more conservative and risk-averse banks. This process was already underway after the Australian Prudential Regulation Authority (APRA) embraced the 2014 financial system inquiry recommendation that the banks deleverage. (direct AFR link... Show More

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Chart Of The Week: Loan Officers Give a Green Light for Stocks

Callum Thomas

This week it's the Fed's bank loan officer survey and the S&P500. The US Federal Reserves's loan officer survey provides insight into bank lending standards, and can give an important cross check against the markets. So much so, that you could easily call this chart the bear market warning indicator.... Show More

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Strip AMP Apart, Unwind Byzantine Banks

Christopher Joye

In my AFR column I open-up with both barrels on vertically-integrated institutions (click on that link to read for free or AFR subs can click here for direct access). Excerpt enclosed: Show More

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A time to buy profits not hope

Andrew Fleming

The rhythm of life is no different to the rhythm of economic and corporate cycles. The optimism of birth, the excitement of growing up, the cynicism arising from the compromises that come with maturity, the tumult of unfair turns and the joys of victory, all in turn impacting upon performance.... Show More

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‘Changing of the guard’ among sustainable dividend earners

Dermot Ryan

Dividend lovers: we’re witnessing a bit of a changing of the guard when it comes to the performance of ASX listed companies. Financials and in particular banks – where investors have traditionally looked for their sustainable dividend growth – are beginning to be threatened for the mantle of sustainable dividend... Show More

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CommSec Stock Watch: Reporting Season preview


CommSec Advisory’s Justin Wynne speaks with Tom Piotrowski about the upcoming February reporting season, including the factors to focus on in the results of the banks & miners. Show More

The best and worst places for value

Livewire Exclusive

Investing in safe companies like consumer staples or healthcare might feel good and help you sleep better, but you’re unlikely to earn outsized returns, says Nick Kirrage from Schroder Global Recovery Fund. He says these ‘stable’ sectors are the most expensive right now, and therefore likely to deliver the poorest... Show More

Podcast: Inside Investing Episode #5

James Marlay

Well a fair bit happened in the past week. Amazon opened in Australia and there’s been that small issue about a banking royal commission. Graham takes us inside a presentation on behavioural finance and I’ll share some insights from one of Australia’s most respected hedge funds. Show More

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Royal Commission Bad for Equity, Good for Debt

Christopher Joye

In the AFR today I argue that the Royal Commission will give us even more conservative and risk-averse "narrow" or "utility" banks with fewer non-core businesses (bye bye planners, wealth, insurance, funds management and proprietary traders). As with the Austrac saga, the end game is stronger banks with lower risks... Show More

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Separating the value from the story

Livewire Exclusive

Currently, the market’s ‘story’ for the global banks is not a positive one. Increasing regulation, the threat of fines and lawsuits, and a general investor-apathy have conspired to make banks an unpopular investment. Nick Kirrage, Portfolio Manager at the Schroder Global Recovery Fund, says it’s this negative story that’s created... Show More

The problem with Fintech

Livewire Exclusive

Are fintech start-ups coming to disrupt Australia’s Big Four Banks? Not any time soon, according to Andrew Martin from Alphinity Investment Management. Fintech start-ups have attracted a lot of attention in recent years, and some of them have been quite successful. Show More

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Big Four Banks' Zero-Sum Problem...

Christopher Joye

In the AFR today I wax lyrical about what I think might be the big four banks' zero-sum, as opposed to positive-sum, game problem; the merits of putting their clients' interests first and being long-term greedy; the problems associated with business model complexity; and introduce readers to my mate "Noddy"... Show More

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Paul Moore: Don’t underestimate the magnitude of change ahead

Alex Cowie

I found this short video from PM Capital’s CIO, Paul Moore, really thought-provoking, and have pulled out a few quotes for you to highlight some points that jumped out (with full video below). These include a warning on rising rates, calling technology crowded, and the systemic risk from ETF's... Show More

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Avoid these 11 habits for better performance

Livewire Exclusive

For decades, the prevailing view of financial markets was one of rational actors creating efficient prices. In recent years, particularly in the wake of the GFC, investors have increasingly adopted a very different view of how markets operate. Loss aversion bias, anchoring, and herding (among others) have all become popular... Show More

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If it feels good, it probably isn’t

Nick Kirrage

The concept of ‘herding’ is a powerful lesson that investors should not ignore. Herding is the bias that can lead investors to follow the crowd, whether they genuinely agree with what they are doing, or are just scared of being left standing alone. Show More

Unseen risks in the banking sector

Daniel Want

The relative fortunes of banks in different parts of the world have been increasingly indicative of underlying trends in currency markets. The question is, however, is this a coincidence or should we be viewing it as a signal? Show More

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Smallest Budget Deficit Since 2013 + Why Hybrids Are Cheap

Christopher Joye

In the AFR I review the government's latest monthly financial data, which shows that Australia's budget deficit is the smallest since 2013 and currently running much better than expected care of strong commodity prices, corporate profits, and asset price appreciation. I also present new research that prices the downside risk... Show More

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A look at Metro Bank and the UK banking industry

Nathan Bell

Metro Bank is the new kid on a UK retail banking scene plagued with customers fed up by lousy treatment from the largely unchallenged oligopoly of Barclays, HSBC, Lloyds Bank and Royal Bank of Scotland. We take a look into why Metro is great and the industry it operates in. Show More

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Spectrum Insights - The capital adequacy fallacy

Damien Wood

The recent collapse of a Spanish bank, two Italian banks, and a missed payment on tier one notes from a German bank reinforced some core beliefs for investing in bank capital. These are:- Show More