This article summarises three major pieces of research that highlight potential issues with the quality and quantity of debt outstanding, and the implications for investors.
Credit
Are Bonds Liquid?
This article examines proposals to improve the liquidity of bonds and explores why liquidity is important to many investors and fund managers.
The Beginner’s Guide to Peer to Peer Lending
This article covers the development of P2P lending, its future prospects and recommendations on how potential lenders should analyse loan risks.
The Perils of Preference Shares
This paper analyses the weaknesses of preference shares, using recent Australian examples to illustrate the issues.
Taking the Heat Out of Home Lending
This article details specific measures banks should take beyond current prudential guidelines to de-risk their home lending operations in advance of a potential fall in house prices.
Where are we at in the credit cycle and how should investors respond?
This article defines the four phases of the credit cycle, then details how investors should position credit portfolios to profit from coming phases.
Does Australia have a House Price Bubble and are RMBS at Risk?
The question of whether Australian house prices are excessive is increasingly being asked. This article briefly reviews the theory and history of housing bubbles, before analysing Australian house prices and what impact a bubble could have on Residential Mortgage Backed Securities (RMBS).
Making Basel 3 Better: Cost Efficient Improvements that Will Reduce the Frequency and Costs of Bank Failures
The Basel 3 bank reforms were proposed as a response to the problems of 2007-2009, with the changes intended to substantially lessen the likelihood of another round of global bank bailouts. This article examines the key reforms and puts forward an alternative view of what will best protect taxpayers from bearing the costs of future bank bailouts.