The retail buyer base for bank hybrids is taking far more risk to get the same return as institutions buying AAA rated Australian RMBS
BB’s are the new BBB’s
With the drop in overnight rates and credit spreads, credit investors are having to take far more risk to earn the same return
Central Banks are Fighting Economic Fundamentals
Central banks are using a monetary policy hammer when economies need a screwdriver. Here’s what they should do instead.
Bank Hybrids are a Screaming Sell
For bank hybrid investors, there are some obvious alternatives that are both lower risk and have higher expected returns
Two Cheers for APRA on TLAC
APRA deserves credit for rejecting the false claims of the major banks and ordering a substantial increase in their tier 2 capital
The RBA Has Lost Its Way
The RBA is ignoring the mounting evidence of the damage caused by low interest rates and the counterproductive outcomes from its actions.
Narrow Road Capital Opportunity and Return Update – May 2019
Whilst global credit seems stretched, Narrow Road continues to find great value opportunities for its clients and continues to deliver strong outperformance
Tech Wreck 2.0 and Debt Wreck 2.0 are Coming
In both equity and debt markets investors are buying securities that have identical characteristics to the disasters of the recent past.
Reflections on Dinny McMahon’s Book on China’s Great Wall of Debt
Using a combination of hard data, analysis and anecdotes, Dinny McMahon lays out why China’s economy must eventually face up to its great wall of debt
Credit Snapshots – March 2019
Bite size updates on the RBA’s responsibility for bubbly house prices and Greece’s rating upgrade and bond issuance.
Reflections on Howard Marks’ Book on the Market Cycle
Howard Marks combines old and new material to explain how the market cycle works and how investors can take advantage of it.
Reflections on Ray Dalio’s Book on Big Debt Crises
Ray Dalio’s seminal book should be read by all investors and policy makers. However, following its policy prescriptions helps create the next debt crisis.