Interest Rates Archives | BetaShares
Is the $A cheap or expensive? An update on valuations

Is the $A cheap or expensive? An update on valuations

The Australian dollar has endured a rollercoaster ride in recent months along with the significant volatility in global risk sentiment. After reviewing a range of fundamental drivers, however, it appears the $A is currently reasonably close to fair value.
An $A valuation framework
A lot has happened since I formally reviewed my $A valuation framework in November last year.

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Rising U.S. Rates: What has historically performed best?

With the Fed raising U.S. rates on 15th March and flagging that there may be more to come, it is worth considering what has historically performed best in such rising rate environments.
To answer this question we undertook some analysis comparing the performance of various country, sector and size equity exposures during the last 10 periods of rising US 10yr bond yields (which took us back to 2001).

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Will the $US rise when the Fed raises interest rates?

With market expectations firming around a likely interest rate hike by the United States Federal Reserve next month, it has also been commonly assumed that this will imply a rise in the US dollar. After all, higher US interest rates should make investing in the United States more attractive, which should attract investment capital and push up the greenback.

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How far will banks raise mortgage rates?

The decision by Australia’s major banks to raise variable mortgage rates in response to higher capital costs has naturally led to questions over how the Reserve Bank is likely to respond.  This note suggests that while the RBA may decide to hold interest rates steady next week, higher mortgage rates clearly add to downside risks to the official cash rate over the next year –

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Bassanese’s Market Insights: Is the RBA’s on hold period unusual?

The Reserve Bank of Australia’s decision to leave interest rates on hold this month now extends the period in which official interest rates have remained unchanged to 14 months.
The extended period of steady interest rates seems unusual to some exasperated market analysts, and has led some to suggest it’s a particularly boring period for “RBA Watching.”
It begs the question: is the latest period of steady interest rates particularly unusual?

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