Investment Opportunities

CBA’s latest hybrid to pay a 3 per cent margin

Commonwealth Bank has launched an issue of hybrid securities, PERLS XII, which will pay 3 per cent above the bank bill rate as a part of a $1.25 billion raise. PERLS XII are subordinated, unsecured notes scheduled to pay floating…

At-call savings rates crash

On Friday, ANZ and NAB cut the interest rates on their bonus savings accounts, both cutting their bonus rates by 25 basis points. Small deposit takers also cut rates late last week. ANZ cut the bonus rate on its Progress…

Testamentary trust tax rules tightened

The tax treatment of testamentary trusts is being tightened, to ensure that minors who are trust beneficiaries do not receive tax concessions they are not entitled to. Last week, the Government introduced draft legislation for consultation. Generally, tax law imposes…

Kogan continues to roll out consumer finance products

Online retailer Kogan is continuing its push into financial services distribution, with the launch of a credit card. The Kogan Money Black Card offers no annual fees, uncapped rewards and member benefits. The card is issued by Citibank. It has…

Millenials plan to stay with mum and dad longer

Young adults are planning to live longer in their parents’ home because they cannot afford to buy their own place, according to CoreLogic’s Perceptions of Housing Affordability 2019. Thirty-four per cent of adult Australians living with their parents think they…

Counting the investment cost of climate change

Climate change will cost Australian close to 20 per cent of their retirement savings, according to estimates in an Actuaries Institute paper published last week. For a worker on median earnings, exposure to the negative long-term return implications of climate…

Short-stay rental rules spelled out

New rules governing the short-stay rental market in New South Wales will apply differently to “hosted” rentals and “non-hosted” rentals. The New South Wales Government has issued a discussion paper outlining a draft planning policy, a code of conduct and…

The investment case for Domino’s

Domino’s Pizza Enterprises has disappointed investors over the past couple of years, after its long stellar run came to an end. One fund manager had recently added it to its portfolio. Domino’s was a market darling, much loved by fund…

Credit availability picks up for home buyers

Borrowers now have better access to mortgage credit, as banks loosen the tight lending standards of the past few years. But credit availability varies widely from lender to lender. Macquarie Securities’ latest mortgage shadow shopping exercise and broker survey found…

Buying a first home just got easier for some

First home buyers are one step closer to a discounted deposit after the Government introduced the legislation to implement the First Home Loan Deposit Scheme last week. The scheme will support 10,000 first home buyers each financial year, which barely…