K: Financial and Insurance Services

Banks set to dodge ‘bail-in’ measures

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Original article by Clancy Yeates, Jonathan Shapiro
The Australian Financial Review – Page: 24 : 18-Sep-14

The Australian Government is likely to reject a "bail-in" regime for large banks. The proposed rule for the largest 29 banks would bail in some bondholders if a bank collapsed, rather than using taxpayer funds. Australian Prudential Regulation Authority Wayne Byres said that there were practical difficulties in introducing a bail-in regime. Moody’s Investors Service said that the regime could reduce access to funding. However, Australia’s membership of the Financial Stability Board may force it to accept the regime

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MOODY’S INVESTORS SERVICE INCORPORATED, FINANCIAL STABILITY BOARD, GROUP OF TWENTY (G-20), COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Rush for exits belies optimism

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Original article by Vesna Poljak, Max Mason
The Australian Financial Review – Page: 17 & 24 : 17-Sep-14

Fund managers are cautious about the strong activity in the Australian sharemarket. In the third quarter of 2014, IPOs have reached a record $US2.4 billion. Private equity firms are also exiting as escrow periods expire. Debt capital market activity reached $US99 billion between 1 January and 15 September, while merger and acquisition deals are worth $US8.5 billion. Fund managers said that private equity firms are taking the opportunity to exit in a strong market, but investors may be becoming complacent

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, HEALTHSCOPE LIMITED – ASX HSO, VEDA GROUP LIMITED – ASX VED, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, DEALOGIC (AUSTRALIA) PTY LTD, INVESTORS MUTUAL LIMITED, AUSBIL DEXIA LIMITED, WAVESTONE CAPITAL PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, GOLDMAN SACHS AUSTRALIA PTY LTD

Beijing sends 7.5pc of investment our way

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Original article by Rowan Callick
The Australian – Page: 20 : 17-Sep-14

Australia received about 7.5 per cent of China’s total outbound investment in the first half of 2014. This was worth about $A2.6 billion. PricewaterhouseCoopers said that two mining deals accounted for 88 per cent of the investment. China’s total outward investment rose by 40 per cent to $A35 billion. The investment focus has moved to real estate, hi-tech and telcos, which have risen from one per cent to 36 per cent of total overseas investment

CORPORATES
PRICEWATERHOUSECOOPERS, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Drop in dollar helps, but don’t bet on its slide

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Original article by Adam Creighton
The Australian – Page: 18 : 16-Sep-14

Economists do not expect the Australian dollar to fall much further. The currency has remained high since the global financial crisis. However, it dropped below $US0.90 in mid-September 2014. The fall in the price of iron ore will reduce Federal Government revenues, but the lower dollar will lift the US dollar earnings of Australian companies. Robert Rennie, of Westpac Banking, believes that the currency is close to "fair value" of about $US0.88

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. FEDERAL RESERVE BOARD

Anchorage Capital reaps big from Dick Smith sellout

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Original article by Eli Greenblat
The Age – Page: 21 : 16-Sep-14

Anchorage Capital will make almost $A370 million from its investment in consumer electronics business Dick Smith. The private equity firm bought the struggling business for $A94 million in September 2012. It was floated in December 2013, giving Anchorage a profit of $A264 million. In mid-September 2014, Anchorage sold its remaining 20 per cent stake at $A2.22 a share

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, MACQUARIE CAPITAL PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Lower $A ‘a wake-up call’

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Original article by Bianca Hartge-Hazelman, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 15-Sep-14

The Australian dollar was heavily sold down in the week ended 13 September 2014. The currency was trading at $US0.904, and Aitken Advisors’ James Aitken says it needs to fall much further in order to benefit the economy. He suggests that an appropriate level for the currency may be around $US0.80, while Warren Hogan of the ANZ Bank forecasts that it will fall to $US0.88 by the end of the year

CORPORATES
AITKEN ADVISORS LLP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, QIC LIMITED, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE

GPT wins support for new float

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Original article by Bridget Carter
The Australian – Page: 21 : 12-Sep-14

GPT Group proposes to spin off six suburban office properties in a new listed property trust to be known as the GPT Metro Office Fund. Around 127 million units in the new trust would be issued in an IPO that would be worth up to $A225.2m. SG Hiscock & Company MD Stephen Hiscock describes the new trust’s upfront yield as "relatively attractive"

CORPORATES
GPT GROUP – ASX GPT,{SPAC}GPT METRO OFFICE FUND,{SPAC}SG HISCOCK AND COMPANY LIMITED,{SPAC}360 CAPITAL INDUSTRIAL FUND – ASX TIX,{SPAC}360 CAPITAL OFFICE FUND – ASX TOF,{SPAC}360 CAPITAL GROUP LIMITED – ASX TGP,{SPAC}INDUSTRIA REIT FUND – ASX IDR,{SPAC}AUSTRALIAN INDUSTRIAL REIT – ASX ANI,{SPAC}NATIONAL AUSTRALIA BANK LIMITED – ASX NAB,{SPAC}MORGANS FINANCIAL LIMITED,{SPAC}ORD MINNETT GROUP LIMITED,{SPAC}ALLENS,{SPAC}UBS HOLDINGS PTY LTD

$A correction ‘overdue’

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Original article by Mark Mulligan, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 11-Sep-14

The Australian dollar was sold down on 10 September 2014, reaching an intra-day low of $US0.9130. The currency had not fallen below $US0.92 since March, and the sell-down was prompted by factors such as growing expectations that interest rates in the US will be increased sooner rather than later. David Bassanese of BetaShares says a correction in the value of the dollar would have occurred earlier if interest rates had not been slashed in Europe and Japan recently

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF ENGLAND, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, ABERDEEN ASSET MANAGEMENT LIMITED

$A correction ‘overdue’

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Original article by Mark Mulligan, Jonathan Shapiro
The Australian Financial Review – Page: 29 : 11-Sep-14

The Australian dollar was sold down on 10 September 2014, reaching an intra-day low of $US0.9130. The currency had not fallen below $US0.92 since March, and the sell-down was prompted by factors such as growing expectations that interest rates in the US will be increased sooner rather than later. David Bassanese of BetaShares says a correction in the value of the dollar would have occurred earlier if interest rates had not been slashed in Europe and Japan recently

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF ENGLAND, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, RESERVE BANK OF AUSTRALIA, ABERDEEN ASSET MANAGEMENT LIMITED

Hedge funds chase self-managed super billions

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Original article by Jonathan Shapiro, Gretchen Friemann
The Australian Financial Review – Page: 1 & 12 : 10-Sep-14

There is growing interest in listed investment companies (LICs) in Australia, and hedge funds believe that these investment vehicles may allow them to attract capital from self-managed superannuation funds. Ellerston Capital and Global Wealth Partners are among the hedge funds that have launched investment vehicles that are modelled on LICs. It is estimated that SMSFs now hold some $A550bn

CORPORATES
ELLERSTON CAPITAL PTY LTD, GLOBAL WEALTH PARTNERS FUND LIMITED – ASX GWP, WHITEHAVEN FUNDS, ZG ADVISORS PTY LTD, BLUE SKY CAPITAL INVESTMENTS LIMITED, PERSHING SQUARE CAPITAL MANAGEMENT LP, RF CAPITAL PTY LTD