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15 July 2022

Week in Review

The RBA raised the cash rate for a third consecutive month, hiking by 50 basis points to 1.35%, in-line with expectations and says it sees inflation peaking in late 2022.

Data released showed Australia’s trade balance soared to a record AUD16bn for May, driven by increased exports of coal and LNG as the Russia-Ukraine conflict continues disrupting global energy supply.

Chart of the Week: Spread between Australian and US bonds

The AU/US 10 yield spread has been volatile over the past one year. However, AU 10 yield bonds still look more valuable than US 10 yield bonds on an outright yield spread basis.

Source: Bloomberg

High Yield Issuers: Quick Update on Recent HY Issuers

This month, we have a few updates on some recent issuers:

  • Earlypay Trade Receiveables Trust
  • MME Horizon Warehouse Trust
  • Capital Alliance (CAIG)
  • Pioneer Credit Ltd

Thought Piece: Experts Suggest Fixed Income Asset Allocation

We hear plenty of experts talking about sectors they favour in the current environment, but how does this translate to your portfolio?

In this article, we talk to Jon Lechte, CEO and Matt Macreadie, Director of Credit Strategy for Income Asset Management for their views on how to allocate in this uncertain environment.

Most Traded

The table below outlines our most frequently traded issues over the past week.

Issuer Coupon Rating (S&P, Fitch, Moody’s) Call Date Yield
National Australia Bank 3.225% A- 18-Nov-26 5.290%
Commonwealth Bank BBSW3M+1.900% A- 14-Apr-27 5.080%
Westpac Banking Corp BBSW3M+1.400% A- 16-Feb-23 5.284%
Westpac Banking Corp BBSW3M+0.830% A+ 06-Mar-23 3.468%
Aust & NZ Banking Group BBSW3M+0.770% A+ 29-Aug-24 4.316%
Commonwealth Bank BBSW3M+1.130% A+ 11-Jan-24 4.075%
Aust & NZ Banking Group 4.000% AA- 22-Jul-26 4.360%
Ampol Ltd BBSW3M+3.400% Baa3 19-Mar-27 7.398%
Suncorp Group BBSW3M+2.300% A- 01-Jun-27 6.660%
Societe Generale 5.000% BBB 24-Jan-24 6.454%

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