Investment Research

Tyndall’s Research report is our regular publication written by members of our investment team for investors and others interested in investment issues. The research report provides a professional insight into the current issues and trends affecting your investments.

• November 2011 - Reporting season for “the big four” – taking the temperature of the Australian economy

  The latest round of reporting for the big four Australian banks highlights a few points of weakness in the economy. Consumers, retail, tourism and manufacturing are all showing some signs of stress. However, in general, recovery from the GFC continues to drive down the banks’ loss forecasts.

• November 2011 - Eurozone - Is this patient healthier than we think?

  A critical underlying cause of the Eurozone crisis was the external imbalances of the PIIGS countries (Portugal, Ireland, Italy, Greece and Spain). The move to fiscal austerity amongst the PIIGS has led to weak economies, which has caused fiscal revenues to decline, thus forcing more fiscal austerity. However, there are signs of progress–fiscal deficits are being cut and external deficits are also shrinking rapidly. The markets appear not to have truly appreciated the decline in the PIIGS current account deficits, but if they do and conditions in Europe calm, then it is possible that we could see renewed investor confidence in the Australian market.

• October 2011 - A quick guide to covered bonds

  On 17 October 2011, legislation came into force allowing Australian banks to issue covered bonds. Whilst they offer an appealing bank funding option, investors should also be mindful of the risks they entail–they are still bank debt and not a direct substitute for government-guaranteed bank debt.

• September 2011 - Weathering the Storm – the Australian Dollar in a Post-GFC World

  The GFC may have proved to be a turning point for the Australian economy and the way the AUD trades in future. In the decades leading up to the GFC, and indeed during the height of the crisis itself, the AUD always fell against the USD in times of adversity. However, during the crises experienced since 2009–most notably the European sovereign debt woes and US’s weakening economy and credit rating downgrade–despite falling at times, the AUD has held up remarkably well compared with its historical performance and with proportionately less volatility.
• July 2011 - Demystifying the myths about bonds

  There are many myths and misconceptions about fixed income – most of which may cause investors to undervalue the benefits of bonds. In this paper, we focus on the most common myths and provide a reality check for each. We also provide information on the characteristics of bonds and how those characteristics affect the return profile of fixed income.

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