Opinion

Quantifying the risk of bonds with S&P credit ratings

Each year S&P Global releases a global report that shows defaults as well as rating movements (upgrades and downgrades). This note provides valuable information for all investors but even more so for wholesale qualified clients who can access individual bond credit ratings. Yet again the report shows that investment grade securities are a statistically low risk way to invest.

Opinion

Interim Report of the Financial Services Royal Commission

The Interim Report of the Financial Services Royal Commission is sober reading, highlighting a financial system where misconduct engineered poor outcomes for many customers and, when revealed, the remediation and punishment appeared to fall substantially short of expectations. But the industry response to the Interim (and final) Report could also increase the visibility and attractiveness of some non bank finance companies as an alternative provider of credit, including some FIIG originated deals.

Opinion

Time to buy or sell USD bonds?

High yield foreign currency bonds are more volatile than higher rated local currency bonds. This journey took another turn recently as the AUD dropped to USD 71 cents. Prices on some of the higher risk names also improved last week. While not an economist or foreign currency expert, Head of Private Client Solutions, Jon Sheridan shares his thoughts on the AUD.

Opinion

AUD the global risk barometer

The AUD dropped harder and faster than other Asian currencies on Friday reinforcing its position as a liquid and flexible proxy for the Asia region. Right now the Australian economy is performing at its best in years which should be good news for the AUD, but the currency is sending a foreboding signal that winter is coming

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