Over the past decade, regulatory capital treatment has seen Authorised Deposit-taking Institutions or major Banks (ADIs) pull back from originating specialised asset-based loans, instead gaining exposure via asset-backed facilities secured by asset-based loans originated by non-bank lenders. Due to ADIs’ preference to invest only in large, mature facilities with a AAA rating, there is an inherent funding gap. This week we explore how specialised investment managers, such as the Aura Private Credit team, provide curated access for investors to this asset class via securitisation or asset-backed facilities. Continue…

by Brett Craig Posted in Aura Group.

• save this article
• POSTED IN Aura Group.

Sentiment remains extremely tentative. Good news is met with share price gains of one or two per cent but disappointment is met with market capitalisations falling by a quarter or more in a single day.  That sentiment met Universal Stores (ASX:UNI) last week, as it released its trading update, which also offered insights into consumer behaviour and guidance for its Full Year 2023 result. Continue…

by Roger Montgomery Posted in Companies, Consumer discretionary.

• save this article
• POSTED IN Companies, Consumer discretionary.

I joined Ausbiz to discuss whether the increased interest rates are finally hurting consumers. There have been some recent profit warnings from discretionary retailers which show the strain on consumer spending. Is now a better time to avoid retailers and focus on other opportunities? Watch the interview: Is it safe to re-enter still shark-infested retail waters?

by Roger Montgomery Posted in Value.able.

• save this article
• POSTED IN Value.able.

While stocks have climbed the proverbial wall of worry, most investors are anticipating a recession either later this year or in the first half of 2024. Such is the extent of recessionary expectations, derivative investors are predicting at least three rate cuts from the U.S. Federal Reserve or just over 100 basis points of cuts to the Fed Funds rate. Continue…

by Roger Montgomery Posted in Consumer discretionary.

• save this article
• POSTED IN Consumer discretionary.

In this week’s video insight David discusses how investors seeking regular income should consider the Aura High Yield SME Fund and the Aura Core Income Fund. As the Reserve Bank of Australia (RBA) have tightened their official cash rate over the past year, we have seen the monthly payments of the Aura fund’s jump from around 0.60 per cent per month towards 0.80 per cent per month. Continue…

by David Buckland Posted in Video Insights.

• watch video
• save this article
• POSTED IN Video Insights.

The Reserve Bank of New Zealand (RBNZ) is determined to crush inflationary expectations, with their 12th increase in official cash rates in the 19 months since 6 October 2021 from 0.25 per cent to 5.50 per cent. Continue…

by David Buckland Posted in Global markets.

• save this article
• POSTED IN Global markets.

Since rates commenced rising, we have been tracking the consumer closely, waiting for the inflection point where inflation and higher mortgage commitments meet the end of government financial support and savings dry up. Continue…

by Roger Montgomery Posted in Consumer discretionary, Editor's Pick.

• save this article
• POSTED IN Consumer discretionary, Editor's Pick.

I joined ABC’s The Business to discuss Buy Now Pay Later (BNPL) businesses including AfterPay and Zip. We always thought these companies were mediocre – they were over-valued, with unsustainable growth and increasing competition.

Way back in 2018 I warned investors about the BNPL space and continued to do so in 2019, and 2020, questioning how long the euphoria would last. Fast forward to today, BNPL providers are facing a raft of new regulations. Is their future now even more concerning?

Continue…

by Roger Montgomery Posted in Editor's Pick, TV Appearances.

• save this article
• POSTED IN Editor's Pick, TV Appearances.