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Fixed Income

Australian Credit Monthly | January 2024

The broad fixed income market was relatively quiet for a change month-on-month, marking an end to many months of volatility.


January was a quieter month for fixed income markets, as both market interest rates and credit spreads across our subset of indices were mostly flat month-on-month (albeit not during). Our All Tier 2 index was the strongest performer across fixed income markets with 0.47% returned over the month. The ASX200 returned 1.17% over the month on continued risk-on market sentiment, driving a third consecutive month of positive returns.

In the Strategy section, we take a deep dive into where the US and Australian economies are positioned and the near-term economic outlook. This is done through four key lenses: rates, inflation, growth, and unemployment.

In the Banks and Financials section, we analyse AT1 and Tier 2 supply for 2024 as well as financial capital ratios. Additionally, we look at relative value across the bank capital structure.

In the Corporates section, we provide analysis on the near-term outlook of AUD-denominated bond supply based on outstanding bond maturities, and analyse value in our domestic credit market, as well as where current local credit valuations stand against global credit.

Read the full report (PDF) — exclusive to Investor subscribers.

 

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 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.



© 2024 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 report has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or New Zealand wholesale clients of Morningstar Research Ltd, subsidiaries of Morningstar, Inc. Any general advice has been provided without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide 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. 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 financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.

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