The Australian iTraxx and bank bill swap rate (BBSW) are both important to fixed income investors. Find out how the iTraxx has been tracking this year given volatile markets and what it tells us as investors. Further, the way BBSW is calculated is changing to provide more confidence to investors. In the future there will be three possible avenues depending on the level of stress in the market
Keeping an eye on volatility
Fixed income investors can gauge the market by keeping track of the Australian iTraxx. Published yesterday in The Australian this note discusses the current state of the bond market and how recent events such as the oil price crash and Brexit have impacted the iTraxx and investment grade credit spreads.
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BBSW evolves to suit the times
The bank bill swap rate is a key benchmark for investors and borrowers. Recent changes to how it is calculated will make it much more robust and should provide confidence in the benchmark after recent rigging scandals in international and domestic markets.
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