The RBA Board minutes were released yesterday after keeping rates on hold this month at 3.85%. The case for cutting in August is growing with jobs data showing unemployment up to 4.3% from an expected 4.1%. Much will depend on the quarterly CPI due out at the end of the month.
NAB raised $1.5 billion in a 15NC10-year subordinated debt transaction yesterday which priced at 170bps over semi-quarterly swap or a 5.774% coupon rate. It doesn’t seem that long ago that margins were over 200bps, but the all-in yield is still attractive. Suncorp raised $1.75 billion in a dual tranche three-year senior unsecured deal. The floating rate tranche raised $1.55 billion and priced at 73bps over 3-month BBSW. The fixed $200m tranche was issued at 4% coupon rate.
This week, we saw what could happen if things don’t go to plan in private credit. Merricks Capital told investors redemptions would be delayed as its flagship Merrick Capital Partners Fund didn’t have any ‘unallocated cash’. There are a couple of lessons to learn from the event, which I discuss in an article Private Credit Company Defers Redemptions.
This tied in well with the series we started recently about Credit Portfolios, Valuations and Liquidity, by Richard Quin from Bentham Asset Management. This week, we bring you Part 2.
NewsworthyData has found the term ‘ETF’, one of the most confusing and searched ChatGPT investment terms. Find out the top questions about ETFs from countries around the world.
Amid the noise, fixed income again offers yield, income and ballast says Adam Whiteley from Insight Investment. Whiteley assesses the US credit and high yield markets.
Contrary to Whiteley, Katherine Neiss of PGIM Fixed Income looks at alternative markets to the US, including the EU, Japan and China.
Have a great week!
