It’s been a relatively quiet week in bond markets with the domestic market focused on the share market reporting season.
The securitisation market kicked off 2025 with Plenti issuing an Auto Asset Backed Security (ABS) deal. It raised $509.3m across 10 tranches and according to KangaNews, the spread on its A-class notes was 20 basis points tighter than its last Auto transaction back in May 2024.
According to market expert, Ken Hanton, the transaction was unusual as a new year typically opens with a Residential Mortgage Backed Security (RMBS) transaction.
I came across this fabulous paper last week, from Pramod Atluri of Capital Group, exploring five bond portfolio themes for 2025. There are some great graphics, and I particularly like the chart showing relative value between investment-grade bonds. The most attractive bracket may surprise you. There’s also an interesting chart showing volatility profiles between various fixed income sub sectors. The paper is well worth a look.
Seema Shah from Principal Asset Management gives her take on the US – Trump tariffs and trade as well as lessons learned from Trump’s trade war with China in 2018. Shah provides some tips on how to navigate volatile markets.
Calastone published a report on 2024 funds flow. The report shows a massive global increase over 2023. The report compares Australian investor flows to global flows. Australian fixed income saw record-breaking flows.
Finally, Carl Ang from MFS Investment Management comments on the RBA Board’s decision next week and Vanguard reports on Australia’s ETF industry.
Have a good week!
