Bonds Markets

EU to prepare for Greek exit: Reuters

24 May 2012 |

Each euro zone country will have to prepare a contingency plan for the eventuality of Greece leaving the single currency, euro zone sources said on Wednesday.

Global equities slump on rising bets of Greek exit

24 May 2012 | Brendon Lau

Before the Bell | Equities are slumping, with the Dow falling to its lowest in 2012, as speculation rises that Greece’s exit from the euro is fast approaching ■ FTSE falls 2.5pc ■ Dow off 1.4pc ■ SPI futures down 18 pts ■ $A at 97.16 US cents.

Nothing is likely to save the day for shares

24 May 2012 | Philip Baker

PRINT: 24 May 2012 | PAGE 4 | Nothing is likely to save the day

Looks like the sharemarket is poised to complete a hat trick. About this time in 2010 shares fell 15 per cent and in 2011 it was 20 per cent. So far this month the major index is down more than 8 per cent from its high.

China sees ‘impediments’ to investing in Europe

23 May 2012 |

China faces “invisible impediments” to investing in some parts of Europe, with Europeans nervous about allowing it to move into some sectors, a senior official at China’s sovereign wealth fund said

Fitch downgrades Japan’s sovereign rating

23 May 2012 |

Fitch has lowered its assessment of Japan’s sovereign credit to A-plus, an investment grade just above Spain and Italy, and criticised Tokyo for not doing more to pare its growing debt.

‘Fiscal cliff’ could trigger US recession

23 May 2012 |

A stalemate over how to tackle a series of fiscal deadlines at year’s end would likely push the United States economy into recession in the first half of next year, the Congressional Budget Office warned.

Egan-Jones cuts Spain credit one more notch

23 May 2012 |

Egan-Jones Ratings cut Spain’s credit level further on Tuesday, citing the same weak banking sector that led the agency to downgrade Spain less than a month earlier.

Fitch downgrades Japan rating to A-plus

23 May 2012 |

The ratings agency Fitch on Tuesday lowered its assessment of Japan’s sovereign credit to A-plus, an investment grade just above the likes of Spain and Italy.

Hollande on collision course with Merkel over bonds

23 May 2012 |

Germany has dismissed a French-led call for EU governments to issue common bonds, a day before a summit which investors are looking to for new measures to counter the bloc’s debt crisis.

$A drops a cent as Wall Street pares gains

23 May 2012 | Brendon Lau

Before the Bell | The $A has fallen more than a cent overnight, to below 98 US cents, and US stocks gave back gains of almost 1pc to close flat despite a surge on European markets ■ SPI down 19pts.

Spanish, Italian yields ease on EU summit hopes

23 May 2012 |

Spanish and Italian government bond yields fell on Tuesday on speculation European leaders may come up with new measures this week to foster euro zone growth, though analysts warned markets could be in for disappointment.

Bonds, shares buck trend and rise together

22 May 2012 | Philip Baker

PRINT: 23 May 2012 | PAGE 4 | Bonds, shares buck trend and rise together

There’s a growing disconnect between shares and government bonds. Usually when bond prices rise, share prices fall. This time around however, both bond prices and share prices are rising in concert.

Pressure builds on corporate loan pricing

PRINT: Capital | 22 May 2012

Australian companies are sitting out of the debt markets for now but eventually they will have to refinance debt, and face banks nervous to protect net interest margins.

France’s Hollande focuses on EU growth

22 May 2012 |

French President Francois Hollande said he wanted all options discussed to stimulate growth in Europe when EU leaders meet later this week.

China gets direct line to buying US Treasuries

22 May 2012 |

China can now bypass Wall Street when buying US government debt and go straight to the US Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government

Investors raise €60bn to buy European bank assets

PRINT: Capital | 22 May 2012

About €60 billion has been raised to buy so-called noncore loan assets currently held by European banks, according to the accounting firm PricewaterhouseCoopers.

US benchmark notes ease on profit-taking

22 May 2012 |

Benchmark US Treasuries eased in price on Monday as investors took profits after a recent rally that was sparked by fears over a worsening of the European debt crisis.

Equities, $A rally on assurances from world leaders

22 May 2012 | Brendon Lau

Before the Bell | Global stocks rebounded and the euro steadied after world leaders emphasised their support for economic growth in the euro zone ■ S&P up 1.6pc ■ Facebook slides 11pc ■ SPI up 33pts ■ $A up three quarters of a cent to US99.09¢.

Bunds hold close to record highs

22 May 2012 |

German government bond prices held close to record highs on Monday as investors fretting that Greece may have to leave the euro zone pursued their flight to assets from the bloc’s strongest economy.

CBA shrugs off funding worries

22 May 2012 | John Kehoe

PRINT: 22 May 2012 | PAGE 1 | CBA shrugs off funding worries

Commonwealth Bank of Australia group treasurer Lyn Cobley says European funding markets are open for high quality Australian banks, despite renewed concerns over Greece’s sovereign debt problems.

Video | Markets Monday

21 May 2012 |

Investors should brace for more disruption as Europe’s debt woes continue, China strives for a soft landing and Australia’s bond market hits its lowest point since before the GFC.

Bonds retreat from last week’s highs

21 May 2012 |

The Australian bond market has opened the week slightly weaker following last week’s record-breaking rallies, with strategists expecting the market to continue to consolidate.

Greek lesson for Aussie retail bondholders

21 May 2012 | Mark Bayley

On t’Mark | Despite all the negative headlines emanating from Europe and Greece in particular, there was some good news coming out of Athens.

Investors brace for further EU upheaval

21 May 2012 | Bianca hartge-Hazelman

Before the Bell | Investors are expected to tread carefully ahead of a meeting of EU leaders later in the week ■ G8 encourages growth ■ Dow falls 0.6pc ■ SPI down 8pts ■ $A steady at 98.4 US cents ■ Broker Watch: ROC, CBA.

Bond dive harbinger for equities

21 May 2012 | Jane Searle

PRINT: 21 May 2012 | PAGE 4 | Bond dive harbinger for equities

Ten-year government bond yields appear to be spelling a doomsday scenario for equity markets, sinking to their lowest level in more than 50 years, at just above 3 per cent..

US bonds dip on profit-taking as worries linger

19 May 2012 |

US Treasury debt prices slipped on Friday as investors took profits a day after benchmark yields flirted with their lowest level in at least 60 years in this week’s rally.

Greece set to dissolve day-old parliament

19 May 2012 |

Greece’s day-old parliament held its last session Friday to allow for new elections next month that are being cast as a decision on whether to keep the country in the 17-nation eurozone.

Contagion fear pins German yields to new low

19 May 2012 |

German government bond yields hit record lows on Friday and were expected to fall further after a mass credit downgrade of Spanish banks stoked fears of a euro zone financial meltdown.

If Greece goes under . . .

19 May 2012 | Tony Boyd

PRINT: 19 May 2012 | PAGE 1 | If Greece goes under . . .

Global financial markets during the week followed the normal pattern seen over the past two years by switching from being bullish to pricing in a worst-case scenario from the Greek sovereign debt crisis.

NAB offer hits the right note

19 May 2012 | John Wasiliev

PRINT: 19 May 2012 | PAGE 3 | NAB offer hits the right note

Income investments paying interest returns that rise and fall with the money market are in the news constantly, with companies and big banks offering them on a regular basis.

Spain on the brink as euro faces the crunch

19 May 2012 | Charles Penty

PRINT: 19 May 2012 | PAGE 15 | Spain on the brink as euro faces the crunch

Spain moved back into the eye of the eurozone storm as the country’s borrowing costs rocketed and the banking sector was hit by mass downgrades.

The end of the great 30-year bond bull run? Think again

18 May 2012 | Jonathan Shapiro

As stock markets tank and the world frets about Greece, bonds are rallying big time. The US 10-year rate fell to below 1.70 per cent, close to record levels, and Aussie bonds have been bid up in a big way.

Hedge funds of the future battle volatility

PRINT: Capital | 16 May 2012

One of the world’s largest investors in alternative assets speaks to Capital about the quality of local hedge funds, the impact of the Volcker rule and how to pick high-performing hedge funds.

Moody’s downgrades 16 Spanish banks

18 May 2012 |

Moody’s Investors Service has downgraded the long-term debt ratings for 16 Spanish banks, in part because of constraints on the government’s ability to provide them with support.

Equities extend losses, Spanish bank ratings cut

18 May 2012 | Brendon Lau

Before the Bell | Global equities have extended losses amid renewed EU debt crisis concerns and weak US economic data ■ S&P 500 down 1.5pc ■ Facebook sets $US38 price ■ SPI down 79pts ■ $A below US99¢ ■ Broker Watch: NWS, CBA.

Greek dilemma, bank worries hit Spanish bonds

18 May 2012 |

Spanish bond yields rose as concerns about the country’s banks and a rapid rise in its borrowing costs kept investment flows directed towards perceived safe havens.

Europe reaps a bitter harvest

18 May 2012 | The Australian Financial Review

PRINT: 18 May 2012 | PAGE 1 | Europe reaps a

Editorial | European policymakers have no one but themselves to blame for their economic and financial predicament. It is the direct result of the political compromises put in place to secure monetary union.

Heritage in $125m retail bond offer

18 May 2012 | Jonathan Shapiro

PRINT: 18 May 2012 | PAGE 20 | Heritage in $125m retail bond offer

Queensland-based regional lender Heritage Bank has launched a $125 million offering of listed bonds in a rare issue of senior-ranking corporate debt to retail investors.

Australian bonds steady after Fed minutes

17 May 2012 |

Australian bond future prices were virtually unchanged after the release of the minutes to the US Federal Reserve's April board meeting saw prices rebound after an earlier sell-off.

Local debt investor left in the cold

17 May 2012 | Shaun Drummond

One major fixed income investor says it has been finding it hard to get companies to direct their book runners to include local investors in any mandate for a bond issue.

Shares sink on Greece, Fed outlook

17 May 2012 | Brendon Lau

Before the Bell | Global equities are in a slump as worries about Europe’s inability to contain the region’s debt crisis continue to heighten ■ SPI futures down 2 pts ■ Dow dips 0.26pc ■ $A at 99.2 US cents.

Euro zone damage control doubtful

17 May 2012 | Dario Perkins

PRINT: 17 May 2012 | PAGE 2 | Euro zone damage control doubtful

With a Greek exit from the euro again on the cards, the chances of contagion also rise dramatically.

Global investors face ‘Bad Goldilocks’

16 May 2012 | Peter Wells

The dominant move in markets is “one of paralysis” according to the BofA Merrill Lynch Global Research’s global fund manager survey. Investors are waiting for a “’bad’ event to provoke capitulation.

Italy heading for a banking crisis

16 May 2012 | Ambrose Evans-Pritchard

As Greece erupts, Italy is moving into the eye of the storm. Its economy is contracting at speeds not seen since the depths of the slump in 2009.

Greece exit would cost France €86bn: study

16 May 2012 |

An exit of Greece from the euro zone could cost the French taxpayer up to €66.4 billion and saddle the country’s banking system with €20 billion in lost loans, according to a study.

Greek uncertainty pushing investors to sidelines

16 May 2012 | Brendon Lau

Before the Bell | Shares on Wall Street have fallen for an eighth day out the past ten, as Greece’s political deadlock set the stage for new elections and more uncertainty ■ Dow falls 0.5pc ■ SPI futures down 32pts ■ $A at 99.37 US cents after hitting near 5-mth low ■ Toll warns on earnings.

Greece set for new election as government talks collapse

16 May 2012 |

Attempts to form a government in Greece have collapsed, jolting financial markets at the prospect leftists opposed to an EU bailout could sweep to victory, nudging the euro zone crisis into a dangerous new phase.

Aussie banks sturdy as credit markets turn dark

PRINT: Capital | 15 May 2012

Analysis | Capital delves into some key charts to explain why Australian bank bonds are holding up well in the face of a possible Greek exit from the Euro, and why they are turning their attention to local retail bond investors.

Hopelessly indebted to you

15 May 2012 | Peter Wells

if you had to pick a John Travolta movie to compare the trouble in Europe to (or write puns about), it would not be Grease. No, Europe is more like Battlefield Earth.

Asian markets brace for Europe fallout

15 May 2012 | Peter Wells

Greece is the word, again. And Spain. And Italy. I wouldn’t expect any less than a rough day of trading in Asia today. SPI futures pointing the S&P/ASX 200 to open 31 points lower suggest as much.

Bonds push higher in rush to safety

15 May 2012 |

Australian bond future prices have risen to their highest level ever amid fears Greece’s political crisis could see it exit the euro zone.

Greek impasse drags down global equities

15 May 2012 | Brendon Lau

Before the Bell | Continuing uncertainty about the future of Greece in the euro zone is making investors wary of risk assets including shares and the $A ■ Moody’s cuts Italian banks ■ S&P 500 down 1.1pc ■ SPI down 31pts

Spanish, Italian debt hammered by deadlock

15 May 2012 |

Spanish and Italian bond yields and default insurance costs surged on Monday as investors worried Greece could abandon the euro and Spain’s ailing banks dumped riskier assets.

Greek leaders show no signs of cutting deal

15 May 2012 | Renee Maltezou

Updated | Greek leftists rejected a last-ditch proposal by the head of state to put technocrats in charge of the country, as financial markets slid on speculation Athens will be forced out of the euro zone.

JPMorgan says Drew retires, Zames to succeed

15 May 2012 |

JPMorgan Chase & Co chief investment officer Ina Drew is retiring, the first casualty after the bank suffered trading losses that could reach more than $US3 billion.

Credit Agricole has contingency for Greek exit

14 May 2012 |

Credit Agricole, one of France’s top banks, acknowledges it is working on contingency plans in case Greece abandons the euro as its currency.

NAB launches $500 million retail note

PRINT: Capital | 14 May 2012

National Australia has launched the year’s seventh listed debt offering of the year, with a subordinated debt issue that should attract strong demand from both retail and wholesale investors.

Bonds hit record high over EU fears

14 May 2012 |

Australian 10-year bond future prices have risen to their highest level ever amid fears about the fallout of Greece's political crisis.

$A clings to parity after China cuts reserve ratio

14 May 2012 | Brendon Lau

Before the Bell | The $A is hanging on to parity on Monday and the ASX looks set for a cautious start, pulled between the prospect of further Greek elections and China’s decision to cut its banks’ reserve ratio ■ EU ministers to meet ■ Dimon to host AGM ■ SPI closed down 2pts on Saturday.

Lift the debt ceiling or lose liquidity

14 May 2012 | Stephen Koukoulas

PRINT: 14 May 2012 | PAGE 2 | Lift debt ceiling or lose liquidity

The opposition is railing hard against lifting the debt ceiling for reasons that have nothing to do with governance or economics, but a lot to do with a political scare campaign.

Trendsetter VicSuper comes up with debt options

14 May 2012 | Duncan Hughes

PRINT: 14 May 2012 | PAGE 3 | VicSuper offers debt option

The global financial crisis prompted nervous investors to turn away from equities, and an innovative industry super fund has other alternatives on offer.

Greek finance minister seeks decision on May 15 bond

12 May 2012 |

Greece’s finance minister said on Friday he had asked the prime minister to decide whether the country will pay a remaining amount of €430 million of a bond maturing on May 15, which was not part of a major bond swap.

US bond yields fall for eighth straight week

12 May 2012 |

US Treasury prices gained on Friday, pushing yields down for the eighth straight week after JPMorgan surprised markets by admitting heavy losses.

Venizelos fails in bid to form government

12 May 2012 |

Greece’s socialist leader has admitted he failed in a last-ditch bid to form a government, taking the nation a step closer to repeat elections as it faces increased EU pressure over its finances.

German bonds bolstered by safe-haven status

12 May 2012 |

German government bond yields fell close to record lows on Friday as investor doubts that Greece will break its political deadlock.

Fitch says EU ratings at risk if Greek exits

12 May 2012 |

Fitch ratings agency said on Friday that if Greece left the euro zone as a result of its political crisis or its economy failing to stabilise, it would impact the sovereign ratings of euro zone countries across the board.

Banks make it too hard to get mortgages: Bernanke

11 May 2012 |

Banks have become so restrictive in making mortgages that many worthy homebuyers are being frozen out of the US housing market, Federal Reserve chairman Ben Bernanke says.

Dow futures hit after JPMorgan flags trading losses

11 May 2012 | Brendon Lau

Before the Bell | US index futures have fallen 0.5pc after the New York close following the announcement of $2bn trading losses by JPMorgan ■ US and European markets had closed higher on hopes for a Greek coalition ■ Dow up 0.2pc ■ SPI down 6pts ■ $A sinks half a cent.

Why it’s up, up and away for Australian government bonds

PRINT: Capital | 11 May 2012

If there’s one trade that keeps on giving it’s to be long Australian government bonds. And there are plenty of reasons for the bond market to continue its upstoppable surge.

China stops buying European debt

11 May 2012 | Andres Martinez

PRINT: 11 May 2012 | PAGE 3 | Euro bonds

China Investment Corp, the nation’s sovereign wealth fund, says it has stopped buying European government debt because of an economic crisis on the continent, though it continues to look for new investments there.

Debt ceiling debate a storm in a tea cup

10 May 2012 | Peter Wells

A handful of politicians have been railing about plans to increase the debt ceiling to $300 billion from $250 billion in the wake of the federal budget. Don’t believe the hype.

Video | The Debt End of Town

10 May 2012 |

Capital editor James Eyers and reporter Jonathan Shapiro discuss the 2012 budget and government debt levels.

EU cornered by politics, banks and debt

10 May 2012 | Glenn Mumford

PRINT: 11 May 2012 | PAGE 5 | EU – and you thought the worst was over

I get the feeling Europe is about to get a whole lot worse. I’m talking a potential economic firestorm capable of stopping global growth in its tracks.

US bond prices edge up on Greek stalemate

10 May 2012 |

US Treasuries gained in choppy trade, lifted by worries Greece may have to call another election and that Spain could need a bailout.

Investors willing to accept next to nothing

10 May 2012 |

Political disarray in Greece and fresh fears about Spain’s banks have triggered a scramble for the world’s lowest-risk government bonds, with investors willing to accept returns of next to nothing.

Spain, Portugal committed to budget consolidation

10 May 2012 |

Spain and Portugal urged Greece on Wednesday to stick to its bailout programme and stay in the euro and promised to spare no effort in reducing their own budget deficits

Greece to receive €5.2bn in aid: EU

10 May 2012 |

Greece will receive €5.2 billion ($6.72 billion) in bailout loans as anticipated on Thursday, despite rising uncertainty over the country’s political future, the European Commission says.

Equities pare losses on Greece bailout agreement

10 May 2012 | Brendon Lau

Before the Bell | Global shares slid for a sixth day but losses were capped after the EU approved more bailout funds for Greece ■ Dow falls 0.8pc ■ SPI futures down 30pnts ■ $A lower at $US1.0046

Bonds dive with more falls likely

10 May 2012 |

PRINT: 10 May 2012 | PAGE 39 | Bonds dive with more falls likely

Tuesday night’s federal budget drove yields on 10-year Australian government debt down to fresh record lows on Wednesday, with speculation yields could fall even further.

Record low bond yields point to cash rate cuts

10 May 2012 | Philip Baker

PRINT: 10 May 2012 | PAGE 4 | Record low bond yields point to cash rate cuts

If equity investors have a reputation for being “glass half full” then bond investors probably fall into the ‘’glass half empty’’ category.

Mirabela slump triggers mining boom fears

10 May 2012 | Ayesha de Kretser

PRINT: 10 May 2012 | PAGE 1 | Mirabela dives for cover as materials index slashed

A dramatic fall in Mirabela Nickel’s share price has sparked fears that the resources boom is faltering as weakening European demand and China’s slowing growth continue to weigh on investors.

Ratings agencies are positive on budget

09 May 2012 |

The three major international credit ratings agencies have given the thumbs up to the federal government's planned return to surplus – but warn that it may be hard to achieve.

German patience with Greece wears thin

09 May 2012 |

Just weeks ago, the idea that Greece would leave the eurozone was almost unthinkable. Now, with Greece’s newly empowered political parties refusing to abide by the terms of loan agreements, that outcome looks more likely.

Bluescope buys back $305m of its US notes

PRINT: Capital | 10 May 2012

Analysis | While many companies are replacing bank debt with longer term bond debt, Bluescope Steel has gone the other way, repurchasing some of its longer term US debt.

Greek political fears push US debt prices up

09 May 2012 |

US Treasuries largely held on to early gains on Tuesday after a solidly bid three-year note auction, with Greece's struggle to form a government prompting investors to scoop up safe havens.

US bonds hold onto early gains

09 May 2012 |

US Treasuries held onto early gains on Tuesday after solid bidding marked a three-year note auction and Greece’s struggle to form a government stoked safe haven buying.

Weidmann says ECB policy no panacea

09 May 2012 |

European central bankers are pushing back against pressure to do more to shore up the euro zone, placing the threshold for fresh policy action a lot higher than market jitters over Greek politics.

Global equities retreat amid renewed euro crisis

09 May 2012 | Bianca hartge-Hazelman

Before the Bell | Buyers stepped in as the closing bell approached in New York to trim earlier losses on concerns about the outlook for Greece ■ S&P 500 down 0.5pc ■ SPI down 22pts ■ $A slips to $US1.0113.

If yields hit bottom, only way is up

09 May 2012 | Philip Baker

Baker | Bond investors, be careful. It’s a tricky time for the defensive asset class, with many favouring the income stream they generate over the wild ride in sharemarkets.

Debt ceiling traded in for one $50 billion bigger

09 May 2012 | Jason Murphy

The Gillard government will increase its debt ceiling to $300 billion as it borrows to fund spending both on and off budget.

Liquidity can’t be left to wither

09 May 2012 | Philip Baker

Apart from worrying about the size of the surplus next year, financial markets were also looking for a commitment to ensure there would be a steady supply of government bonds.

Corporates still waiting for changes to debt issuance

09 May 2012 | Philip Baker

Almost everyone seems to back the idea of developing a local retail corporate bond market to broaden corporate funding sources and provide exposure to fixed income products.

Windfall likely to benefit bonds

09 May 2012 | Joanna Heath

PRINT: 09 May 2012 | PAGE 4 | Windfall likely to benefit bonds

Measures in last night’s budget to deliver extra cash to some consumers are unlikely to give equities an extra kick, strategists say, with the greater impact expected to show in the bond market.

Ratings, tax hamper corporate bonds

09 May 2012 | John Kehoe

PRINT: 09 May 2012 | PAGE 20 | Ratings,

A dearth of rated companies and a tax system that heavily favours equities are undermining efforts to develop the local corporate bond market, one of the country’s most senior institutional bankers says.

No reason to change credit rating: Moody’s

08 May 2012 |

Ratings agency Moody's says there is nothing surprising in the federal budget and has no reason to change its outlook for Australia's AAA credit rating.

BoJ’s bond holdings to exceed cap

08 May 2012 |

The Bank of Japan's government bond holdings will exceed its self-imposed cap by 10 per cent by year-end when bonds bought under its asset-buying program are included, a sign that an ultra-loose monetary policy is drawing it closer to bankrolling public debt.

Bonds lower in quiet day’s trade

08 May 2012 |

Australian bond future prices are lower after a quiet day of trading which followed a sharp rally on Monday.

Push to merge and list media companies

08 May 2012 | Lucy Gao

China’s Ministry of Finance recently issued a circular calling for the advancement of the cultural sector, that includes the media.

Bonds lower despite negative sentiment

08 May 2012 |

Australian bond futures prices have opened slightly lower despite negative sentiment around European elections.

Wall Street brushes off EU elections

08 May 2012 | Brendon Lau

Before the Bell | US stocks have closed flat, suggesting that the weekend’s European elections were broadly as anticipated ■ S&P 500 steady ■ SPI up 33pts ■ $A up half a cent at $US1.0214.

Bonds firm on global economic worries

07 May 2012 |

Australian bond futures prices are higher after some weak US jobs figures and a change of government in Greece dampened market sentiment.

Poll puts euro break-up back on risk list

07 May 2012 | Glenn Mumford

PRINT: 08 May 2012 | PAGE 33 | Poll puts euro break-up back on risk list

We’ve just seen a Sunday when the euro zone’s “worst case” suddenly became a whole lot more likely. Break-up is now seen as a very real risk.

Video | Markets Monday

07 May 2012 |

Shareholders are set to ­sell first and ask questions later this week in the wake of new anti-austerity governments being elected in France and Greece.

Local bonds higher after weak US jobs data

07 May 2012 |

Australian bond futures prices have opened higher on weak US data and European elections.

International financial news summary

07 May 2012 |

A roundup of news in finance, economics and business from around the world:

RBA’s big cut: explanations and implications

07 May 2012 | Mark Bayley

On t’Mark | Why did so many economists and commentators get the RBA interest rate decision wrong?

Stocks to fall after weak US jobs, EU elections

07 May 2012 | Brendon Lau

Before the Bell – The ASX is set for heavy falls on Monday after a weak US jobs report on Friday and as investors digest a socialist victory in the French presidential election and gains for anti-austerity candidates in Greece ■ Dow down 1.3pc ■ SPI down 51pts ■ $A at $US1.012.

US bonds advance as risk aversion rises

05 May 2012 |

US Treasury debt prices rose on Friday after April employment data reinforced concerns the US economic expansion was slowing, stoking demand for low-risk government debt.

Socialist chief says vote will decide Greece’s fate

05 May 2012 |

Socialist leader Evangelos Venizelos told voters on Friday that Greece may have to abandon the euro if they fail to support him in Sunday’s general election.

Bonds firmer after RBA statement

04 May 2012 |

The Australian bond market is firmer, despite the Reserve Bank of Australia (RBA) giving no hints as to when the next interest rate cut will be.

Pepper issues sub-prime RMBS

PRINT: Capital | 04 May 2012

Pepper Homeloans, one of Australia’s biggest non-bank lenders, has sold $300 million of non-conforming mortgage loans in the first non-conforming residential mortgage-backed bond issue in over a year, in a deal arranged by NAB and CBA.

Good time to lock in rates

04 May 2012 | David Bassanese

PRINT: 05 May 2012 | PAGE 2 | Good time to lock in loan rates

The RBA’s decision to slash official interest rates by 0.5 of a percentage point raises several important implications for investors.

Go global, says US bond investor

PRINT: Capital | 03 May 2012

A US-based bond investor managing more than $US11 billion tells Capital the RBA has served Australia well and explains why fixed income investors should expand their world view and why inflation-linked securities aren’t bullet-proof.

Bond higher ahead of US jobs data

04 May 2012 |

Australian bond futures prices have opened higher on Friday as the market awaits news of key jobs data in the US.

Political paralysis could push Greece to edge, again

04 May 2012 |

Overshadowed by the prospect of a Socialist win in France’s presidential vote, the parliamentary election in Greece on Sunday carries far greater risks for the euro zone.

RBS to complete repaying bailout money next week

04 May 2012 |

State-backed Royal Bank of Scotland Group will say on Friday that it will finish repaying £164 billion in emergency loans from Britain and the United States next week, a person familiar with the situation told Reuters.

US bonds gains on service sector data

04 May 2012 |

US government debt prices rose slightly as data showing a bigger-than-expected pull-back in growth in the US services sector offset a surprisingly large drop in US claims for jobless benefits.

US stocks slip after weak services data

04 May 2012 | Brendon Lau

Before the Bell | A bleak US services report and warnings of further risks for Europe has extended a pull back on Wall Street into a second day ■ S&P 500 down 0.8pc ■ SPI down 12pts ■ Broker Watch: ANZ, ASX.

Heavyweight pair punts on equities

04 May 2012 | Joanna Heath

PRINT: 04 May 2012 | PAGE 3 | Heavyweights punt on equities

Two of Australia’s most highly regarded investors have defended equities as the asset class of choice against fixed interest, arguing that bonds are overvalued and risky.

Crown finds bond needs a step up

04 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 04 May 2012 | PAGE 18 | Crown finds bond needs a step up

Crown Limited has been sounding out investors about a possible bond issue, and has been met with questions about its move on Echo Entertainment. It is understood investors want interest rate “step ups” – more money – should Crown’s balance sheet be exposed.

Spanish borrowing costs jump at strongly bid bond sale

03 May 2012 |

Spain's borrowing costs jumped at an auction of three- and five-year bonds on Thursday, though the sale met strong demand in a sign that investors are not losing their appetite for the country's debt if the price is right.

Japan ratings may slip with no reforms: S&P

03 May 2012 |

Japan is in danger of slipping from its AA- credit rating if public debt continues to rise and if reforms are held up as its unpopular government struggles to get support for tax measures, Standard & Poor's said on Thursday.

We need a corporate bond market

PRINT: Capital | 03 May 2012

The big four are the dominant source of funds for debt financing, but if the major market players came together they could create a whole new approach to raising capital in Australia.

Bonds firmer after weak Chinese data

03 May 2012 |

The Australian bond market is firmer as investors fled to safe haven assets following the release of weak economic figures from China and the US.

Wealthy banks to invest in shares

03 May 2012 | Lucy Gao

China may allow banks to invest the trillions they have raised in stocks.

Video | The Debt End of Town

PRINT: Capital | 03 May 2012

Capital editor James Eyers and reporter Jonathan Shapiro discuss retail corporate bonds and how they could be a new option for investors as interest rates continue to fall.

The euro crisis just got a whole lot worse

03 May 2012 | Jeremy Warner

With Europe plunging back into recession and unemployment soaring, France’s François Hollande is calling for growth to be reprioritised over austerity. His plan won’t work.

ECB to hold fire in crisis-hit Spain

03 May 2012 |

The European Central Bank will resist pressure to do more to fight the euro-zone crisis when it meets in Barcelona on Thursday, holding fire despite calls to restart its bond-buying program to shield austerity-hit Spain from further pain.

Spanish borrowing costs to jump at auction

03 May 2012 |

Spain’s borrowing costs are set to rise by more than a percentage point at an auction of three- and five-year bonds on Thursday.

Bank CEOs air grievances with proposed US rules

03 May 2012 |

The chiefs of six large US banks, meeting on Wednesday with a key Federal Reserve official, aired their grievances about a host of proposed regulations meant to prevent a repeat of the 2007-2009 financial crisis.

Safe-haven buying bolsters US bonds

03 May 2012 |

US Treasury debt prices rose on Wednesday as weakness in European manufacturing and slower private-sector hiring in the United States fuelled expectations of a global slowdown.

US Treasury studying new debt products

03 May 2012 |

The US Treasury Department sees a strong market for floating-rate notes that would give it a new tool for managing the government’s borrowing needs but is putting off a decision for now.

Crown Casino causes stir on local bond market

03 May 2012 | Sarah Thompson

PRINT: 03 May 2012 | PAGE 26 | Crown Casino causes stir on bond market

There’s a buzz in the local corporate bond market, with Crown Casino engaging local fund managers about a potential Australian dollar bond issue.

Bond rate lows lift commercial sector

03 May 2012 | Robert Harley

PRINT: 03 May 2012 | PAGE 3 | Bond rate lows lift commercial sector

The Reserve Bank of Australia’s cut to the cash rate will have a delayed impact on commercial property. More immediate is the impact of falls in the bond and bank bill rates that preceded the RBA’s move.

Weak jobs data renews global growth concerns

03 May 2012 | Brendon Lau

Before the Bell | Private sector hiring in the US has fallen short of expectations, while euro-zone unemployment hit a record high, putting downward pressure on global stocks ■ SPI up 3 pnts ■ $A lower

Bond plan wins ASIC backing

03 May 2012 | Jonathan Shapiro and Paulina Duran

PRINT: 03 May 2012 | PAGE 1 | Bond plan wins ASIC backing

The top corporate regulator has thrown his weight behind a plan to boost Australia’s corporate bond market by helping smaller investors to participate in wholesale corporate bond offers

JGBs drop on light profit-taking

02 May 2012 |

Japanese government bond prices fell on Wednesday as investors took profits after a rally in the wake of easing steps by the Bank of Japan last week that pushed some yields to 1½ -year lows.

Bonds prices fall after RBA rally

02 May 2012 |

The Australian bond market is weaker on profit-taking following Tuesday's rally to record highs after the bigger than expected cut to official interest rates.

Bond investors welcome long-awaited rate cut

PRINT: Capital | 02 May 2012

Australian bond investors and economists have welcomed the Reserve Bank’s efforts to get the economy back on track with an aggressive – albeit well overdue – interest rate cut.

Moody’s warns of hit to Japanese bonds

02 May 2012 |

The lack of a sales tax increase in Japan could bring forward "the day of reckoning" in the Japanese government bond (JGB) market and cause investors to demand higher premiums, Tom Byrne, a senior vice president of Moody's Investors Service, said on Wednesday.

New Aussie bond index goes live

PRINT: Capital | 01 May 2012

As competition heats up in Australian bond indices, global index provider Standard & Poor’s Indices has launched the first-ever Aussie bond index to provide intra-day pricing.

$A rallies as investors buy the dip

02 May 2012 |

The Australian dollar rose slightly on Wednesday, as investors took advantage of yesterday’s sharp drop following the Reserve Bank‘s decision to cut its cash rate by 50 basis points.

Bonds weaker on US Treasuries

02 May 2012 |

Australian bond futures prices have opened slightly softer on Wednesday morning, following on from US market movements.

Inflation risk will keep Fed on hold

02 May 2012 |

The risk of inflation is keeping the Federal Reserve from doing more to support the US economy, according to comments from several top officials of the world’s most important central bank.

US bond prices fall on stimulus doubts

02 May 2012 |

US government debt prices fell on Tuesday when news that the US manufacturing sector unexpectedly grew at its strongest pace in 10 months.

Dow hits 4-year high after upbeat manufacturing data

02 May 2012 | Brendon Lau

Before the Bell | An unexpected surge in US manufacturing activity has renewed investor optimism and driven the Dow to its highest since late 2007 ■ Dow up 0.5pc ■ SPI up 20pts ■ $A steady at $1.0327.

ECB cash injection fails to trigger credit revival

02 May 2012 | Angela Monaghan

PRINT: 02 May 2012 | PAGE 44 | ECB cash injection fails to trigger credit revival

Euro zone bank lending to the private sector rose more slowly than expected in March, despite the central bank’s injection of $1.3 trillion into the banking system.

Bonds deliver best returns amid fresh anxiety

02 May 2012 | John Detrixhe

PRINT: 02 May 2012 | PAGE 1 | Bonds deliver best returns amid fresh anxiety 

For the first time since the start of 2008, bonds were the only investments to provide positive returns amid renewed concern the global economy is slowing and as widening deficits in Europe threaten contagion.

Fixed securities require timely decisions

02 May 2012 | Philip Baker

PRINT: 02 May 2012 | PAGE 1 | Fixed securities require timely decisions

Baker | Half the girls born today will live beyond 95 – highlighting the challenges for people retiring at 65 who may have to fund 30 years of retirement.

Getting into a fix a good strategy for retirees

02 May 2012 | David Potts

PRINT: 02 May 2012 | PAGE 1 | Getting into a FIX a good strategy for RETIREES

In the first 15 years of your retirement, the sharemarket is likely to have three serious corrections. So holding more cash and fixed interest securities such as bonds a decade either side of retiring is a no-brainer.