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Australian Credit Monthly | March 2022

John Likos, CFA  |  07 Apr 2022Text size  Decrease  Increase  |  
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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.

Read the full report (PDF)

 

As of 17 December 2019, we have expanded our Hybrid research universe by replacing our current Australian credit research coverage with BondAdviser-labelled research report PDFs. For more information, please see this article and FAQ.

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Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. © 2020 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. Morningstar has entered a research distribution agreement with BondAdviser Pty Ltd and is licensed to make certain credit research available pursuant to that agreement. Please refer to the Bond Adviser disclaimer for more information.

Any general advice has been prepared by BondAdviser Pty Ltd (ABN 31 164 148 467 AFSL 456783) without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.bondadviser.com.au/important-information/. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.

is director of investment management at BondAdviser.

© 2022 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

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