Source: RBA Despite the above chart being a few weeks old, the above chart shows credit spreads have widened significantly over the past few months such that at the end of November, both A and BBB rated corporates have spreads in excess of 300bps. When you consider that the historic default risk is much much …
Monthly Archive: December 2011
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Dec 19
Australian Government Bond Yields…there’s now a 2 there
Source: Bloomberg & RBA Thought I’d check the Australian Government Bond yield curve to see if the market is confirming my bearish sentiment on the Australian economy and it looks like it is. 3 Year bond yields have dropped below 3%…that’s an ugly indicator for our economy. Send article as PDF
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Dec 19
A few too many ‘China Hard Landing’ stories for my comfort
I’ve read a few too many times how Australia is well positioned because of its exporting links to China and how this should help us escape any serious economic issues flowing out of Europe. Obviously our markets haven’t quite agreed with that with bond yields dropping massively over recent months and our equity market continuing …
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Dec 11
Euro Summit…far from a resolution
I’m not completely familiar with all details coming out of the Euro summit a couple of days ago so I thought I’d cheat a little and point out some conclusions from a couple of my preferred econobloggers, Paul Krugman and Felix Salmon. Firstly Krugman… European stocks are up today, and I have no idea why. …
Dec 07
Australian Government Bond Yield Curve…no change in 2 weeks
Source: RBA As the above chart shows the yield curve dropped significantly from the start of August through to towards the end of November and at the end of yesterday after the RBA dropped the cash rate another 25bps to 4.25%, the yield curve is basically the same as it was two weeks ago. Whilst …