1.93's A$ to the Pound!!!
Sep 29th 2010, 1:05 pm
#2281
Banned
Joined: Aug 2008
Posts: 22,348
Re: 1.93's A$ to the Pound!!!
The question is when are the glory days of the Australian dollar going to end?
(From: http://www.dailyfx.com/forex/fundame...onth_Lows.html)
Australian Dollar a Standout Among Already Excessively Leveraged High Yield Currencies
If risk appetite is overheating; then it is important to identify those currencies that are at the extremes of over and under-valued. The Aussie dollar may be at the former end of that spectrum. While the economy was able to weather the last recession with the help of China’s export appetite; it is hard to justify the currency’s current highs even under a positive light. The greater the extreme, the more dramatic the correction.
If risk appetite is overheating; then it is important to identify those currencies that are at the extremes of over and under-valued. The Aussie dollar may be at the former end of that spectrum. While the economy was able to weather the last recession with the help of China’s export appetite; it is hard to justify the currency’s current highs even under a positive light. The greater the extreme, the more dramatic the correction.
Sep 29th 2010, 2:59 pm
#2282
BE Enthusiast
Joined: Sep 2005
Posts: 517
Re: 1.93's A$ to the Pound!!!
Easy go, easy come. Having pigged out on BOQ RMBS, looks like the AOFM needs a bit more cash to prop up the Aussie housing market - and with the RBA not participating, that will be your Super fund dollars hard at work. Note it was oversubscribed by over $1 billion:
AOFM sells $500 million of 2019 bonds
29/09/2010 1:26:01 PM
The Australian Office of Financial Management (AOFM) has sold $500 million of Treasury bonds.
The bonds, which mature on March 15, 2019, were sold at a weighted average yield of 5.0374 per cent.
Bids accepted ranged from yields of 5.035 per cent to 5.040 per cent.
The Reserve Bank took up none of the offer.
The coverage ratio - the ratio of bids received to the value of bonds offered - was 3.07.
There were 35 bids for the issue worth a total of $1.534 billion.
Of those bids, 13 were successful, with 5 of them allocated in full.
Settlement is on Tuesday, October 5.
29/09/2010 1:26:01 PM
The Australian Office of Financial Management (AOFM) has sold $500 million of Treasury bonds.
The bonds, which mature on March 15, 2019, were sold at a weighted average yield of 5.0374 per cent.
Bids accepted ranged from yields of 5.035 per cent to 5.040 per cent.
The Reserve Bank took up none of the offer.
The coverage ratio - the ratio of bids received to the value of bonds offered - was 3.07.
There were 35 bids for the issue worth a total of $1.534 billion.
Of those bids, 13 were successful, with 5 of them allocated in full.
Settlement is on Tuesday, October 5.
can you clarify where you got the above information, it worries me
(I am a BOQ shareholder )
Bank of Queensland Ltd (BOQ) raised $850 million from an increased residential mortgage-backed securities (RMBS) offering to domestic investors, signalling the local RMBS market is returning to normal.
BOQ increased the size of the deal from $500 million after an initial over-subscription by investors for three tranches of notes from the bank’s 2010-1 REDS Trust series.
Twenty investors, including the Australian Office of Financial Management (AOFM), participated, with the AOFM taking $250 million worth of Class A Notes.
(I am a BOQ shareholder )
Bank of Queensland Ltd (BOQ) raised $850 million from an increased residential mortgage-backed securities (RMBS) offering to domestic investors, signalling the local RMBS market is returning to normal.
BOQ increased the size of the deal from $500 million after an initial over-subscription by investors for three tranches of notes from the bank’s 2010-1 REDS Trust series.
Twenty investors, including the Australian Office of Financial Management (AOFM), participated, with the AOFM taking $250 million worth of Class A Notes.
Sep 30th 2010, 7:16 am
#2283
Lost in BE Cyberspace
Joined: Jan 2009
Location: Brisbane
Posts: 20,821
Oct 1st 2010, 10:56 pm
#2285
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: 1.93's A$ to the Pound!!!
The over-subscription is interesting. It seems that the Bonds were popular.
Last edited by MartinLuther; Oct 1st 2010 at 10:59 pm.
Oct 2nd 2010, 12:26 am
#2286
Banned
Joined: Aug 2008
Posts: 22,348
Re: 1.93's A$ to the Pound!!!
It's depressingly possible. Maybe I'm looking at it a bit simplistically (or maybe it's wishful thinking) but my guess is if weak sterling is going to be long term/permanent then inflation, wages and property prices will adjust to make up for at least some of the depreciation. In London/the South East at least. But it will take a good few years for that to happen.
Oct 2nd 2010, 1:13 am
#2287
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: 1.93's A$ to the Pound!!!
I suspect they'll switch to Euros before Stirling recovers.
Oct 2nd 2010, 7:22 am
#2291
Lost in BE Cyberspace
Joined: Jan 2009
Location: Brisbane
Posts: 20,821
Re: 1.93's A$ to the Pound!!!
It's depressingly possible. Maybe I'm looking at it a bit simplistically (or maybe it's wishful thinking) but my guess is if weak sterling is going to be long term/permanent then inflation, wages and property prices will adjust to make up for at least some of the depreciation. In London/the South East at least. But it will take a good few years for that to happen.
Doesn't look like its moving up at all now.
Oct 2nd 2010, 7:33 am
#2293
Banned
Joined: Aug 2008
Posts: 22,348
Re: 1.93's A$ to the Pound!!!
I know . If anything it looks likely to drop further. Every time a piece of good economic news is released someone from the BofE comes along and destroys any optimism. One could be forgiven for thinking that there's a consiracy to keep the pound weak
. If anything it looks likely to drop further. Every time a piece of good economic news is released someone from the BofE comes along and destroys any optimism. One could be forgiven for thinking that there's a consiracy to keep the pound weak
