Monday, 18 March 2013

All calm for now?

BANK shares, making up a record percentage of the stockmarket after their run to record and multi-year highs, show few signs of slowing as the global hunt for yield powers on, despite concerns about their valuation and investment risks (here).

...Australia’s bond market is benefiting from strong international demand for assets in the nation’s currency, Debelle said today. Sales of sovereign notes by Japanese investors have been “more than compensated for” by other asset managers boosting purchases, and the market has become more attractive to foreign borrowers, he said....
...“Kangaroo issuance has been supported by the broad-based reduction in spreads, the attractive basis, and foreign investors looking beyond AAA instruments for Australian dollar exposure,” he said. “These foreign investors have been notably active and Asian investor participation in particular continues to grow.” (here)

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