Equity Financial Engineer | Bank on a yield run after currency pullback

Mathan Somasundaram

Deep Data Analytics

Banks: The substantial weight in the index and the high yield premium has made the bank sector to trade in line with the currency and the economy. Central banks globally continue to maintain an easing bias through currency war. US Fed decision next week will be the dominant factor in determining the trend for the financial sector. We expect US Fed to remain dovish and push up AUDUSD and the bank sector. Banks could get rerated higher post May update season by delivering more clarity on bad debt and payout worries. Property Trusts: Property Trusts remains the highest risk segment of the financials as it is trading at a premium to long term fair value with declining ROE. The flattening yield outlook and recent outperformance supports moving funds from property to banks. The continued government policy support to infrastructure/housing construction will deliver better growth for LLC despite the sector outlook. (VIEW LINK)


Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.