Financial Services
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Keep an eye on US ten-year bond yields in 2018
David Buckland
December 19, 2017
The structural decline in US ten-year bonds from 15.8 per cent in 1981 to 1.3 per cent in 2016 has seen both record lows and generational lows. Others include 4.7 per cent in 1830, 2.8 per cent in 1900 1.7 per cent in 1945. continue…
by David Buckland Posted in Financial Services
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Bank Results in a Nutshell
Roger Montgomery
November 9, 2017
Stuart Jackson, Portfolio Manager for The Montgomery [Private] Fund and Senior Analyst whipped up the following summary of the Big Four bank’s 2017 results for a TV interview during which the host decided to chat about something else.
So here’s are Stuart’s thoughts – now exclusive to the insights blog! continue…
by Roger Montgomery Posted in Financial Services
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The BIS says we’ll soon have to pay for our private debt binge
Andrew Macken
November 7, 2017
There’s no question Australia’s economy has enjoyed a stellar run. The trouble is, it’s largely been a consumer-based, credit-fuelled growth story. And the Bank of International Settlements (BIS) reckons it could soon come to a shuddering halt. continue…
by Andrew Macken Posted in Financial Services
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Upcoming bank results should cheer investors
Stuart Jackson
October 16, 2017
Three of Australia’s biggest banks – Westpac (ASX: WBC), ANZ (ASX: ANZ) and NAB (ASX: NAB)– are about to report, and we think there’s plenty of reasons to be optimistic. A turnaround in the trajectory of net interest margins, and good news on bad and doubtful debts, should leave investors happy in the run-up to Christmas. continue…
by Stuart Jackson Posted in Financial Services
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Major banks put an end to the great ATM rip-off
Stuart Jackson
September 29, 2017
The major banks recently announced they will no longer charge fees to customers using their ATMs, even if they are accessing an account with another bank. This is a pretty big change in policy, and carries some downside risks. So, why did they do it, and what does it mean for investors? continue…
by Stuart Jackson Posted in Financial Services
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Emerging Markets’ Bond Yields In A Massive Bubble
David Buckland
September 14, 2017
An interesting piece of research from Macquarie Equities came across my desk, illustrating the massive bubble we are living through. Despite the chequered history of many Emerging Economies, the spread on the yield on their sovereign bonds relative to US Bonds has come down from seven per cent to three per cent over the past three years.
by David Buckland Posted in Financial Services
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APRA brings some cheer, but banks continue to face headwinds
Stuart Jackson
July 26, 2017
On Wednesday, APRA, announced moves to make Australian banks safer. The announcement was greeted warmly by the market. But what do the new capital requirements mean for the banks in the short to medium term? And should investors really be so sanguine about the prospects for the banks? continue…
by Stuart Jackson Posted in Financial Services
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Watch out for stock valuations when QE ends
Stuart Jackson
July 20, 2017
Central banks could soon end their bond buying activities, thereby unwinding quantitative easing. Should this occur, real interest rates would again be driven by the normal forces of supply and demand. And this could affect stock valuations. continue…
by Stuart Jackson Posted in Financial Services, Market commentary
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The great unwind of the Fed’s balance sheet
David Buckland
July 7, 2017
For the first time since it began its quantitative easing in 2009, the US Federal Reserve (Fed) announced it would commence the gradual unwind of its US$4.5 trillion balance sheet sometime later in 2017. Should this plan proceed, higher borrowing costs for corporations and households will be the likely result and this warrants a degree of caution. continue…
by David Buckland Posted in Editor's Pick, Financial Services, Global markets
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Moody’s cut the credit rating of four of the biggest banks
Roger Montgomery
June 20, 2017
We were interested by the overnight news that Australia’s four biggest banks have had their long-term credit rating downgraded. Downgraded rating = higher funding costs = higher mortgage rates = mortgage stress? continue…
by Roger Montgomery Posted in Financial Services
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