Tier 2

A surprising yet sensible proposal from the banking regulator, which will keep insurance hybrid securities in place

As first forecast here in November 2023...

Global investors appear to be completely oblivious to the prospect of a very important upgrade to the major banks’ Tier 2 bond credit ratings with Standard & Poor’s...

Markets do not appear to be pricing in the risk of a substantial slow-down in bank bond issuance

The back-story... I try to put my money where my mouth is. A couple of months prior to the Federal Election, we shifted more than $100m into franked ASX hybrids for...

This week I outline our analysis of the coming tsunami of "bail-in-able" Tier 2 bonds care of APRA's finalised Total Loss Absorbing Capacity (TLAC) policy, which the...