A wrap-up in the weekly markets from Federated Hermes
Geir Lode, Head of Global Equities
Markets have been volatile this week as concerns around a potential recession and inflation continue to dominate the news. The Federal Reserve's approach to managing these issues is being watched like a hawk, with investors wondering...
Challenger Limited (ASX:CGF) has announced the offer of Challenger Capital Notes 4, seeking to raise $250 million. Challenger Capital Notes 4 are subordinated, unsecured, perpetual and mandatorily convertible into Challenger ordinary shares.
The offer also includes a reinvestment offer for eligible Challenger Capital Notes 2 holders.
Distributions are floating rate, discretionary,...
The Reserve Bank of Australia has announced 14 selected use cases and providers in its pilot program with the Digital Finance Cooperative Research Centre (DFCRC) on a research project to explore potential use cases and economic benefits of a central bank digital currency (CBDC) in Australia.
The pilot will involve the...
After ANZ and NAB’s successful Tier 2 subordinated bond issues, CBA followed suit today, raising $1.75 billion. The bond is fixed to floating, and its issue yield was 6.704%, with a margin of 245 basis points over semi quarterly swap.
Like ANZ’s bond, it is longer-dated and pays a higher...
by Matt Simpson, Senior Market Analyst, City Index
GDP rose 2.7% y/y (2.7% expected, 5.9% prior)
Australian GDP rose 0.5% q/q (0.8% expected, 0.6% prior)
Australian CPI rose %y/y (8.1% expected, 8.4% prior)
Exports outstripped imports for a third quarter and was a main contributor to GDP
Household consumption fell...
With its first bond raise in nearly six years, Telstra is set to raise $650 million with the five-year senior bond reportedly seeing $1.9 billion of demand according to The Australian.
It is the first major Australian raise by Telstra since 2017. The company had previously launched a Euro bond...
Frank Uhlenbruch, Investment Strategist in the Janus Henderson Australian Fixed Interest team, provides his Australian economic analysis and market outlook.
Market Review
Stubborn inflation and hawkish central banks led to higher yields as markets moved to discount further monetary tightening. Risk appetite waned, with both equity and credit markets softening. Against...
Fixed-income manager Western Asset, part of Franklin Templeton, has forecast that volatility in fixed income markets will decline this year, giving bonds the scope to provide the defensive characteristics needed to offset the risk of price falls in riskier assets.
Anthony Kirkham, Head of Investment Management/Australian Operations for Western Asset, says...
