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RBA QE is being outpaced by rest of the world, putting upward pressure on A$ and implying more QE is needed…

This is an article published by Kieran Davies, Chief Macro Strategist, on Livewire recently. In a world of near-zero interest rates, the stance of monetary policy is now better measured by the size and composition of a central bank’s balance sheet. In Australia’s case, the RBA’s adoption of unconventional monetary policy has seen its balance …

RBA QE is being outpaced by rest of the world, putting upward pressure on A$ and implying more QE is needed… Read More »

Forecasting QE3 Program

In this new paper, Coolabah’s Chief Macro Strategist, Kieran Davies, and its Chief Investment Officer, Christopher Joye, examine the case for the RBA launching QE 2.0 after the current $100 billion QE program, which has helped slow the ascent of both long-term interest rates and Australia’s trade-weighted exchange rate, expires. They focus, in particular, on …

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QE 2.0: Weak wages growth and the RBA’s full employment goal point to another round of bond purchases

In this new paper, Coolabah’s Chief Macro Strategist, Kieran Davies, and its Chief Investment Officer, Christopher Joye, examine the case for the RBA launching QE 2.0 after the current $100 billion QE program, which has helped slow the ascent of both long-term interest rates and Australia’s trade-weighted exchange rate, expires. They focus, in particular, on …

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Active management is key to fixed income alpha

This is an article published on Livewire recently. Smart active managers in high-grade credit can find and exploit bond mispricings to generate alpha (or capital gains) that is as big, if not bigger, than the yield earned on these securities. This is Coolabah Capital Investment’s investment philosophy, which Portfolio Management Director Ying Yi Ann Cheng …

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Commonwealth budget, Oct 2020: Tracking better than the government’s forecast profile ahead of a windfall from iron ore

Authored by Kieran Davies, Coolabah Capital Investments. In this new report, we review our real-time tracking of the Commonwealth budget. Treasurer Frydenberg is expected to publish a budget update this week, with the Mid-year Economic and Fiscal Outlook (MYEFO) reportedly due on Thursday. Treasury’s strong preference would be to publish no change to the outlook …

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Why Coolabah is painting a rosy picture for 2021

This is an article published on Livewire recently. Ying Yi Ann Cheng, Portfolio Management Director at Coolabah Capital Investments, says the manager spent almost one billion dollars buying assets in March 2020 in anticipation of the fiscal and monetary policy stimulus packages that ultimately lead to a strong market recovery. At the time, many investors …

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QE, the collapse of the money multiplier, and the bond multiplier

In a new report published today we argue that this year has seen a sea change in the operation of monetary policy in Australia with the Reserve Bank adopting several unconventional measures that have been part and parcel of its peers’ policy toolkits since the global financial crisis. With the cash rate now at the Reserve …

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Aussie house prices increase in October (in line with our March 2020 forecast)

This is an article portfolio manager Christopher Joye published on Livewire recently. Consistent with our March 2020 forecast for a very mild 0% to 5% correction in national house prices followed by a recovery around six months later, CoreLogic has reported today that national dwelling values increased by 0.4% in October for the first time …

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