APRA have finally come out with their capital rules to fulfil the ‘unquestionably strong’ requirement of the Financial Services Inquiry. The focus is on is the Common Equity Tier 1 ratio requirement (CET1), which is the amount of equity the banks need to hold relative to risk weighted assets (loans).... Show More
Speaking at the Melbourne Mining Club on Thursday, the South 32 chief executive lamented the mining industry’s “poor track record deploying capital” without offering any insights into how the future might be different. Having already been the chief financial officer of the world’s largest mining company, he seemed to be... Show More
Franco Nevada CEO David Harquail held out hope of a mining industry rapprochement with pension funds in a recent Melbourne Mining Club address. Mostly (and unsurprisingly), he spoke about the virtues of funding though royalty streaming. More objectively, Harquail lamented the loss of pension fund support for mining development. This... Show More
In The AFR today I review a significant new speech by APRA's impressive boss, Wayne Byres, who cautions that the major banks' capital ratios will have to rise "somewhat higher"---contrary to claims they are done and dusted. Interestingly, Byres also said APRA would work to enhance "competition" where it can,... Show More
It can't be easy being a diversified portfolio manager these days. Whilst several years of QE and ZIRP have buoyed both equity and fixed income markets, fears of rate hikes, margin compression and valuations that are already on the high side have many wondering what kind of returns will be... Show More
The Australian mining industry spent more on exploration and development in the last five years than in the 40 years before that. The most recent national accounts data from the Australian Bureau of Statistics (ABS) reinforce the evidence that Australia's mining industry has become an inefficient user of capital. Spending... Show More