Archive | Interest Rates

Floating rate bonds

Floating rate bonds rise in popularity

With US interest rates on the rise and the prospect of Australian rates heading the same way, floating rate bonds have increased in popularity as they allow investors to benefit from increasing rates.

high-rise

Risks to banks at end of construction boom

Australian banks are vulnerable to a collapse in the local housing market due to an overexposure to high-rise developments, interest-only loans and high loan-to-value ratios. The main uncertainty is the timing.

RBA-signage

How to read RBA interest rate decisions

The RBA follows a fairly standard formula when drafting its interest rate announcements each month and a keen observer might detect a change in view before an actual change in interest rates.

MF-us-flag-sky

Global turmoil likely to make Fed patient

The US Fed has finally lifted interest rates as anticipated, but from here it’s especially difficult to predict future rate changes given that current economic conditions would normally dictate lowering rates.

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