Commentary

Week in review

From the trading desk

Australian unemployment data due out Thursday, US GDP forecasts downgraded post the Florida storms, IPG to redeem notes as part of Pro-Pac’s acquisition, QBE rating reaffirmed, popular trades in Barminco, Rackspace and Avon, with Dell bonds a good switch target. Continuing trades in high yield RMBS and Sydney Airport 2020 and 2030 bonds. Strong employment numbers released last week, focus on US Federal Open Market Committee meeting while RBA minutes are expected. Strong trades in Barminco and in Rackspace despite a Moody’s downgrade and a comeback for FIIG bond issuance. The RMBS space is attractive with new SMHL and La Trobe notes

Trade opportunities

What the traders are trading

Two ideas this week – Michael Cooper and James Price from the Melbourne office argue explain why Hertz is a good option despite driverless cars and disruptive services and Ben Taylor shows why when the going gets tough, the tough invest in government bonds and other low risk options

Week in review

From the trading desk

Australian unemployment data due out Thursday, US GDP forecasts downgraded post the Florida storms, IPG to redeem notes as part of Pro-Pac’s acquisition, QBE rating reaffirmed, popular trades in Barminco, Rackspace and Avon, with Dell bonds a good switch target. Continuing trades in high yield RMBS and Sydney Airport 2020 and 2030 bonds.

Trade opportunities

Yield hungry? Have your cake and eat it

This year, credit spreads across the rating spectrum have continued to tighten significantly and spreads between rating bands have compressed. This is normal behaviour in a positive credit environment. However, given the lengthy credit cycle many investors are questioning whether now is the time to move towards a more defensive portfolio

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