Over recent weeks, we have highlighted that there are two main international macro events that will need to be closely monitored over the coming months. Each could impact the performance of investment markets in 2019. Show More
household debt
The level of household financial stress in Australia is a key issue. This is because a significant pull-back in the financial position of households would have flow-on effects across the economy. So, the recent data released by the nation’s largest lenders provides an important reading of future trends. Show More
Yet again another quarter and another CPI miss. The RBA has no reason to move rates on the back of these soft numbers. Despite oil prices rallying throughout the quarter and the global economy and risk in general being bid to the moon, we are still yet to see the... Show More
The declaration two weeks ago by the Australian Prudential Regulation Authority (“APRA”) that it was taking further steps to slow the growth of bank provided “interest only” loans in residential property is to be welcomed. However, it represents a reactionary policy that does not target either an appropriate pricing framework... Show More
The debate is well and truly on over whether Australian housing is getting bubbly. The media sees its job as to create a conflict so those trying to form a view from reading general commentary could be left thinking that everyone is either a full bubble proponent (see LF Economics,... Show More
The Australian credit cycle may be taking a turn for the worse. Local banks have recently reported rising bad debt problems. But before corporate bond investors rush to dump their bond funds, we advise to pause and put things in perspective. Bad debts are currently near zero percentages in Australia.... Show More
The ABS released its latest Finance & Wealth figures for Q2 2015 this week which showed household net worth surging to above $8.4 trillion in the June quarter. Show More
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The IMF mission chief James Daniel says "My first impression from 30,000 feet is that house prices have gone up a lot in Australia, so that will be a big part of the discussion. Even if you were to take the view that house prices are frothy or overvalued, what... Show More
