Market Commentary

Anton Murray - Market Commentary

Institutional Investors Back Tobacco Control

Posted by Anton Murray Consulting on . Posted in News, Investment Banking News, Market Commentary, Investment Banking MC


AMP Capital has led a statement by a group of institutional investors, representing US$3.53 trillion in AUM, in support of global tobacco control measures. The statement, issued in conjunction with World No Tobacco Day on 31 May, endorsed the World Health Organisation’s (WHO) position that tobacco is a “threat to development”. AMP Capital, AXA, Californian pension fund CalPERS and French reinsurer SCOR were the leading signatories of the statement, joined by Australian super funds including HESTA, Australian Ethical, Local Government Super, NGS Super and VicSuper.

The statement has been signed by more than 50 institutional investors, health systems, pension funds and insurers representing US$3.53 trillion in assets under management. The statement, which is addressed to health ministers worldwide and the WHO, addresses “the threat posed by tobacco consumption to global health and economic wellbeing”. “The campaign aims to highlight the links between the use of tobacco products, tobacco control and sustainable development to encourage countries to include tobacco control in their responses to the 2030 Sustainable Development Agenda, and to broaden support and participation in efforts to implement plans that prioritise action on tobacco control,” it said.

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Monash University issues $218m climate bond

Posted by Anton Murray Consulting on . Posted in News, Investment Banking News, Market Commentary, Investment Banking MC

Tim Stewart, InvestorDaily

The Clean Energy Finance Corporation has made a $20 million investment in a $218 million climate bond issued by Monash University. The Monash University climate bond is reportedly a world first for a university. It has been certified by the global Climate Bonds Initiative. The Clean Energy Finance Corporation (CEFC) is the cornerstone investor in the new bond, with its $20 million commitment.

Over the next two years, Monash University will use the capital raised via the climate bond to invest in a portfolio of clean energy projects. CEFC debt markets lead Richard Lovell said the investment in the bond “reflects our commitment to work alongside organisations such as Monash to help catalyse further investment options to support clean energy projects”. “Through our involvement in this climate bond, we are highlighting the potential of this new asset class as an important source of capital for Australian and offshore investors,” Mr Lovell said.

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Volatility drives decline in equities popularity

Posted by Anton Murray Consulting on . Posted in News, Investment Banking News, Market Commentary, Funds Management News, Funds Management MC, Investment Banking MC


Investor confidence in equities fell significantly in the first half of 2016, suggesting investor sensitivity to volatility, according to research from Colonial First State Global Asset Management. The company’s Equities Preference Index (EPI) declined by a total of 29 per cent in the first six months of the year Colonial First State Global Asset Management (CFSGAM) said, compared with only 3 per cent and 9 per cent declines respectively in the second and first halves of 2015. “The decline was relatively evenly spread from January to May, averaging about 5 per cent per month, suggesting investors took some time in reacting to the market weakness and volatility early in the half,” the company said.

“Surprisingly, the decline in June ahead of the Brexit vote was smaller at just 1 per cent, however this may be because investors already reduced their positions ahead of the vote.” CFSGAM said the sizeable decline in preference for equities was significant due to the “already low starting point” from which it fell. The company’s research also highlighted “a significant difference in equity preference by age”, with younger investors (aged under 35) increasing their preference for the asset class by 3 per cent, where those between 50 and 59 years of age decreased theirs by 39 per cent.

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Credit Suisse Hires HSBC’s Yeung for New Credit Trading Desk

Posted by Anton Murray Consulting on . Posted in News, Investment Banking News, Investment Banking MC

Viren Vaghela, Bloomberg

Credit Suisse Group AG has hired Edwin Yeung from HSBC Holdings Plc to set up a U.S. and European credit trading desk in Hong Kong. Yeung joined the Swiss bank as a director at the end of August and reports locally to Andy Mellor, head of Asia Pacific convertible bond and cash bond trading, according to an internal memo seen by Bloomberg News. He reports globally to Steven Feinberg, head of investment-grade trading for America, and Chris Orr, co-head of investment-grade trading for the Europe, Middle East and Africa region, the memo said. Yeung spent a decade at HSBC and has traded U.S. credit since 2010.

The hiring of Yeung is in response to “significant demand” from customers in Asia to trade U.S. and European investment-grade corporate bonds during local hours, the memo said. It didn’t provide details of the size of the team that would work with Yeung, or whether further hires are planned. Credit Suisse spokeswoman Yukmin Hui, who confirmed the memo, declined to give more details. Bond desks in Hong Kong have been recruiting from rivals in recent weeks amid record sales. UBS Group AG hired two traders, one each from Goldman Sachs Group Inc. and Citigroup Inc., earlier this month, people familiar with the matter said, while Standard Chartered Plc added three in credit trading and sales.

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It’s Not Just Deutsche. European Banking is Utterly Broken

Posted by Anton Murray Consulting on . Posted in Insights, News, Investment Banking News, Investment Banking MC

Jeremy Warner, The Telegraph

A little while back I somewhat unwisely penned a column declaring the financial crisis essentially over. All I meant by this was that with the return of full employment and rising living standards, most of the economic wounds of the crisis had healed, at least in the US and the UK. Yet as is evident from the events of the last week, the banking crisis itself is far from over.

Nine years after the initial eruption, it still rumbles on, with the epicentre now moved from the US to Europe. Only it’s not the same crisis; in large measure, it is completely different. Today’s mayhem is not so much the result of reckless bankers and people asleep at the wheel of regulation, but rather of the public policy response to the last crisis itself – that is to say, regulatory overreach and central bank money printing. All eyes are naturally focused on the specific problems of Deutsche Bank, but Deutsche is in truth no more than the canary in the coal mine.

As Tidjane Thiam, chief executive of Credit Suisse, observed last week, as an entire sector, European banks are still “not really investable”. Much the same disease as afflicts Continental banks also applies to British counterparts, including Royal Bank of Scotland, Barclays and even Lloyds. All are fast being enveloped by a perfect storm of negatives, and this time around, it is substantially the policymakers and law enforcers who are to blame.

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