If you venture off the well trodden pathways, there’s always something interesting happening in debt markets.
Memos
Could Austria’s Century Bond End Up Like Argentina’s?
It doesn’t take a default for Austria’s recently issued century bond to trade at the same price as Argentina’s defaulted debt.
When the Truth is this Crazy, Who Needs Conspiracy Theories?
The insolvency of Wirecard has made many look foolish, but short sellers and a journalist had been on the case for years
Are CLOs Going to Cause Another Financial Crisis?
Are claims that CLOs will bring down American banks another “Big Short” or merely a beat-up?
The Winner Is… Busted Companies
Retail investors piling into shares of bankrupt companies is a sure sign this isn’t a typical stock market rally
The Federal Government Tacitly Approves Conflicted Financial Advice
The decision to ban commissions on only some listed securities encourages dodgy advisors to provide suboptimal advice.
Credit is Normalising, But…
Credit markets are improving but three dark clouds on the horizon point to the possibility of worsening conditions ahead.
Home Loan Data Shows the Economic Cost of Lockdowns
The lockdown has resulted in a surge in payment problems, with one in eight home loan borrowers now unable to keep up with their scheduled repayments.
Hundreds of Thousands of Small Businesses are Near Death
The extraordinary number of small businesses that had problems paying their debts before this crisis began now have few options left.
Virgin is Another Disaster for Listed Note Buyers
Virgin’s downfall is another example of how the predominantly retail buyer base has long struggled to recognise the risks of hybrid securities.
Virgin is Better Off Going Through Insolvency
Without going into insolvency soon, Virgin Australia risks going the way of Ansett and being sold off for scrap.
A Chance to Reset in Debt
For those that seek out the illiquidity premium, this is a rare opportunity to increase your prospective return whilst decreasing the risk of long-term capital loss.