US Archives - Royston Capital

15 Nov

Economic Update – Smooth Sailing Through to Christmas

Last night (14 Nov) may have been the moment that investment markets finally became satisfied… Read More

8 Nov

Economic Update – “Shifting Gears”

Equity markets extended the recovery from the September 2021 sell-off with US equity markets setting… Read More

13 Aug

August Economic Update – “Geopolitical tensions take center stage”

Geopolitical issues dominated the headlines this month. In the Strait of Hormuz, the world’s busiest… Read More

19 Feb

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February 2019 Economic Update – “Shifting Stance”

At the end of 2018, and more evident now, was a change in momentum in… Read More

9 Aug

August 2018 Economic Update

Royston Capital Economic Update August edition 2018, By Chris Boag During the month of… Read More

25 Mar

The Chase for Yield

In recent months we have seen two high profile listed hybrids come to market, Westpac Capital Notes 5 (WBCPH) and CommBank PERLS X Capital Notes (CBAPG). Both of these were oversubscribed however we felt that their offer for yield was insufficient for us to participate. There are many factors to consider when investing for yield, and when you are seeking more yield you have three choices; i) extend tenor, ii) move down the credit quality spectrum; and iii) move down the capital structure. In the case for WBCPH and CBAPG (and other recent IPOs), the tenor has been extended to seven years or more, without the necessary pick up in margin over the 90-day Bank Bill Swap Rate. To understand this, we set the scene below and explain why we didn?t participate in the offer. Read More

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