The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Monday, January 30, 2012

Cost of major bank covered bonds falls sharply

According to the Debt Capital Market Review:

Westpac (AA-) sold A$1.7 billion of fixed rate, five year covered bonds at a spread of 165bps over swap to yield 5.75% per annum. While the spread to swap was 10bps tighter than that achieved by CBA, the yield was 22bps tighter. Westpac also sold A$1.4 billion of five year FRNs at a spread of 165bps over bank bills.  Friday’s rate sheet from Yieldbroker shows spreads on the Westpac and CBA covered bonds have contracted to 141.9bps and 143.1bps, respectively and to 154.5bps and 157bps for the covered FRNs [a fall from 175bps for CBA's original issue].