insto - Australian financial markets

***Credit upbeat despite growth decline (30 April 2009)***

Credit markets tightened and US Treasuries fell as the US Fed left rated unchanged and said it had seen mild improvements in the economic environment.

Data was not as positive as the Fed’s rhetoric. US first quarter growth statistics revealed that the US economy had contracted by 6.1 per cent, more than expected, due to sharp declines in exports and business inventories.

***NAB set to print non-guaranteed bond offer (29 April 2009)***

National Australia Bank is set to price a non-guaranteed bond deal in excess of A$1 billion  

The bond offer is a  three year deal with pricing expected to be in the 'high 120s' to 130 basis points over BBSW/swap.

The book is understood to have built to over A$1 billion in size and will price some time today.  

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***Markets dragged down by bank concerns (29 April 2009)***

It was a mixed day for markets as encouraging US consumer confidence and housing numbers was outweighed by fears of a swine flu outbreak and concerns over banks balance sheets.

The S&P500 stock index fell 0.77 per cent having gained earlier in the day. The US CDX investment  index opened wider on Tuesday at 180 but tightened to 177.

***Great day for golf (28 April 2009)***

Today’s filing comes The clubhouse of the NSW Country Club where Insto held the inaugural Singapore Airlines/Insto Financial Services golf day. It was a great contest thanks to superb conditions on the home of the 2009 Australian open. The highlight was of course the fine six iron approach shot on the 17th by Insto’s debt editor to scoop the closest to the pin prize.  

CBA exploring hybrid capital issue (27 April 2009)***

CBA is exploring opportunities to issue hybrid capital, the bank said today in an extremley brief ASX statement.

“Commonwealth Bank of Australia today announced that it is exploring opportunities to raise hybrid capital” said the statement.

***Local issuer downgrades rise but defaults limited (27 April 2009)***

Despite a rise in downgrades, Australian corporate defaults have seen worse days says rating agency S&P. 

The downgrades/upgrades ratio of Australasian issuers edged upwards to 2.57x in 2008 from 0.37x in 2007, according to an S&P report.  The figure is in line with the global ratio of 2.55x but not as high as Australasia’s 2002 level of 4.60x.

*** RMBS guarantee on the cards ? (27 April 2009)*** 

Following the UK government’s decision to guarantee mortgage backed securities, could we expect to see calls for a similar initiative introduced in Australia ?

The short answer is “yes”.

***Markets upbeat ahead of 'stress' week (26 April 2009)***

Markets had an upbeat conclusion to the week, as corporate earnings continued to exceed low expectations. 

In the US, the Dow index gained 1.5 per cent on Friday (down 0.7 per cent for the week). The US CDX investment grade index clawed itself back after a poor start to the week, tightening a further 6 points on the day to 181.

***Aussie iTraxx edges tighter ahead of bank results (24 April 2009)***

Australian credit markets are set to end the week on a positive note ahead of major bank earnings releases.

The Aussie iTraxx tightened by 8 basis points overnight to 324.5, and is in a further 5 basis points this morning at 315/325

***Credit markets positive after choppy session (24 April 2009)***

Credit spreads improved in volatile day for stocks. Equities had a remarkably confused day. The Dow Jones index crossed the ‘no change’ mark 82 times throughout the session before ending in positive territory. 

Credit markets had more conviction. The US CDX investment grade index tightened 6 basis points to 186 on the day, as tightening credits outnumbered widening credits by 7 t o 1.