Australia

Highlights Recommended Allocation Quarterly Portfolio Outlook: Cash Injections Versus COVID Infections…

Highlights In this Weekly Report, we present our semi-annual chartbook of the BCA Central Bank Monitors. All of the Monitors are now below the zero line, indicating the need for continued easy global monetary policy to help mitigate the COVID-19 recession (Chart of the Week). Central bankers have…

Highlights Investment Grade Sector Valuation: Our investment grade corporate bond sector valuation models for the US, euro area, UK, Canada and Australia show some common messages, as markets have adjusted to a virus-stricken world. The most attractive valuations can be found within Energy and…

Highlights Fed/BoE NIRP: It is too soon for either the Fed or Bank of England to consider a move to a negative interest rate policy (NIRP), even with US and UK money markets flirting with pricing in that outcome. Lessons from “NIRP 1.0”: In the countries that did go to negative rates in 2014-…

Highlights COVID-19 & The Economy: Australia is now in its first recession in 30 years, thanks to lockdown measures to contain the spread of COVID-19. Yet the nation’s rates of infection and death from the virus are relatively low, which should allow for a faster reopening of the domestic…