Westpac Cuts Fixed Mortgage Rates Too

From The Advisor. As of Wednesday (20 September), Westpac’s two-year fixed rate for owner-occupiers paying principal and interest (P&I) dropped by 11 basis points to 4.08 per cent (standalone rate) or 5.16 per cent comparison. For those with a Premier Advantage Package, the new rate is 3.88 per cent (4.88 per cent comparison) for two-year … Continue reading “Westpac Cuts Fixed Mortgage Rates Too”

Genworth Gets NAB’s LMI Contract Extended

In a release to the ASX, Genworth, the listed Lenders Mortgage Insurer said that its contract with NAB to provide LMI had been extended for one year to 20th November 2018. The contract represented 10% of Gross Written Premium in 2016. Ms Georgette Nicholas, Chief Executive Officer and Managing Director of Genworth, said, “We look … Continue reading “Genworth Gets NAB’s LMI Contract Extended”

Bond Returns, Lower For Longer?

From Moody’s A less accommodative US monetary policy may heighten market volatility near term. However, over time, the fundamentals that give direction to business activity and financial markets will prevail. For now, current trends involving demography, technology, regulation, and globalization favor the containment of core price inflation and still relatively low US Treasury bond yields. … Continue reading “Bond Returns, Lower For Longer?”

Don’t count your economic chickens before they hatch

From The Conversation.   After their customary two-day meeting, the Fed announced that they were holding interest rates at their current level, but would begin unwinding the massive bond-buying program they instituted in the wake of the financial crisis. The Fed’s statement said: In October, the Committee will initiate the balance sheet normalization program described … Continue reading “Don’t count your economic chickens before they hatch”

RBA Says The Next Chapter Is Coming

An interesting and wide ranging speech from RBA Governor Philip Lowe. In short, the global economy is on the up, central banks are beginning to remove stimulus, and locally, wage growth is low, despite reasonable employment rates. Household debt is extended, but in the current low rates mostly manageable, but the medium term risks are … Continue reading “RBA Says The Next Chapter Is Coming”

Fed Holds Stance on Rate Hikes

In the September 2017 statement the FED remains bullish on the US economy, and says it will start to normalise its balance sheet in October (reversing QE). Bond yields rose, putting upward pressure on capital market funding. In fact there has been a significant change in trajectory since mid September, with yields rising again. The … Continue reading “Fed Holds Stance on Rate Hikes”

Why Property Investors Are Less Bullish Now

Continuing our analysis of our households surveys to September 2017, today we look at the property investor segments (which account for one third of mortgage loans).  We already highlighted that investors have become less bullish about future home price growth: For example, in 2015, 77% of portfolio investors were intending to transact, today this is … Continue reading “Why Property Investors Are Less Bullish Now”

RateSetter Passes $150m in loans

Peer-to-peer lender RateSetter has now reached the $150m mark in loans facilitated thanks to a rapid influx of lenders into the platform. They provide data on their portfolio via their web site, great disclosure (mainstream players take note!).  From this we see that debt consolidation and home improvement were the two main purposes, and the … Continue reading “RateSetter Passes $150m in loans”

CBA Sells Life Insurance Businesses

Commonwealth Bank today announced the sale of 100% of its life insurance businesses in Australia (“CommInsure Life”) and New Zealand (“Sovereign”) to AIA Group Limited (“AIA”) for $3.8 billion (the “Transaction”). The sale agreement also includes a 20-year partnership with AIA for the provision of life insurance products to customers in Australia and New Zealand. … Continue reading “CBA Sells Life Insurance Businesses”

Is a Central bank-issued digital currency a realistic prospect?

Interesting speech from Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbankentitled “From Bitcoin to digital central bank money – still a long way to go“. He says the Bundesbank actively shapes the ongoing conversation about distributed ledger technology (DLT) by contributing insights of its own, not least because as a central bank, … Continue reading “Is a Central bank-issued digital currency a realistic prospect?”