Australian Credit Monthly | March 2022

The first quarter of calendar year 2022 represented the worst quarter on record for the AusBond Composite Index, returning -5.88%. It was also the worst month on record, returning -3.75%. Commodities continued to benefit from deglobalisation, while interest rate expectations hammered fixed-rate investors.

In the Strategy section, we analyse the rapidly changing landscape for fixed income investors, especially the anticipated impact from the incoming tidal wave of central bank rate hikes. Coupled with quantitative tightening and higher inflation, the dynamic here ensures for a bumpy ride ahead.

In the Banks and Financials section we provide a synopsis of our expectations for the Major Banks' upcoming result releases, along with an update on the Insurance segment relative to the Floods.

The Corporates section dives into M&A, including the moves at Wesfarmers and Ampol, along with analysis regarding our concerns surfacing from Centuria's new wholesale issue and how that impacts C2FHA Noteholders.

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