Fixed Income
Christopher Joye

A few quick thoughts on recent credit spread movements in the Tier 2 subordinated bond and the Additional Tier 1 capital hybrid markets. First, the screenshot below shows the clean price of the most recently issued, 5 year major bank subordinated Tier 2 bond. The impact of APRA’s November 2018 consultation... Show More

Christopher Joye

In The AFR my main column argues that---shock, horror---the new Westpac hybrid, called Westpac Capital Notes 4 (ASX: WBCPG), is actually a good deal. That's a first for me. I explain that while CBA's Perls 8 has performed very well in the secondary market it has been the dud I... Show More

Saxo Capital Markets Australia

Saxo Capital Markets’ traders of the Australian desk have just opened their third short position on a local share. Following their short trades on Commonwealth Bank and Newcrest’s shares, Saxo traders have now suggested shorting Westpac at market value and with a first target at $A27.48. According to the traders... Show More

Matt Felsman

A banking wrap following last week’s reporting and the RBA cutting the official cash rate to 2.0%. WBC had a soft 1H15 result, with cash earnings of $3.778b around 2% below consensus. We downgraded our forecasts by 1.5%, 3%, and 4% for 2015-2017 and lowered our Price Target from $35.10... Show More