Markets continue to reach new highs, in part due to an expected US Fed easing interest rate cycle. While the market widely expects a rate cut overnight, not everyone agrees on what happens next. Here’s a few more interesting snippets from the US:
- The Senate has confirmed Stephen Miran, a top economic adviser to President Donald Trump, to the Federal Reserve’s board in a 48-47 vote along party lines. Miran has said he will keep his role as chair of the White House Council of Economic Advisers while serving on the Fed, raising concerns about the central bank’s independence.
- US inflation rose 2.9% in August, the highest since January, driven by higher costs for goods, food, and housing, while initial unemployment claims reached their highest level since October 2021.
- US Treasuries have returned 5.8% in 2025, the highest among the 15 largest debt markets, as the yield advantage over global peers fell to a three-year low.
- US ETF holdings reached a record US$12.19 trillion.
Our lead article this week is a part transcription on evolving private markets from the recent Jana Advisers Investment Conference. It was fascinating to hear how private and public debt markets are converging and conversations about liquidity, the illiquidity premium and how an asset allocator views both markets.
Thomas Poullaouec from T. Rowe Price is back with the popular asset allocation view. I so like the simple charts indicating which sectors he favours, it’s well worth having a look.
We have a global round-up from Chris Iggo of AXA IM, including UK, Japan and Europe, while Seema Shah from Principal Asset Management has the EU in her sights.
ASIC has filed civil proceedings against ANZ for misconduct in relation to bond trading.
In Australian corporate bond issue news:
- IAG launched a 12NC7.7 Tier 2 deal with priced guidance of 185 basis points over 3-month BBSW
- AGI Finance, raised $400m in a six-year senior unsecured fixed-rate deal with a 4.832% coupon
- Defence Bank raised $50m in a 10NC5 Tier 2 deal with a margin of 205 basis points over 3-month BBSW
- Teachers Mutual mandated a three-year senior floating rate note
- Scentre Group raised $1 billion in a senior unsecured 10-year fixed-rate bond, with a coupon of 5.35%
- Western Sydney University raised $300m in a seven-year, fixed-rate, senior unsecured bond with a 4.746% coupon
- Port of Melbourne mandated a seven or 10-year deal
- Caterpillar launched a three-year fixed rate senior deal with price guidance of 80 basis points over semi-quarterly swap
Have a great week.
