Australia: Cash assets keep margin calls at bay

HenryTo

No significant increase in margin calls in the Australian stock market:

http://www.theaustralian.news.com.au/story/0,20867,21316275-643,00.html

rffrydr · Posted: Fri Mar 16, 2007 7:50 am Post subject:

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Australian_Dollar_Gains_on_Strong_1173957545682.html

April 03 will coincide with probable rate hike and release of repatriation pressures on carry. We'll get a chance to see how much is left in this trade.
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rffrydr · Posted: Thu Mar 15, 2007 7:59 am Post subject:

Backed up by strong employment gains.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a04RoIfttEd4&refer=home

Will probably push old highs at 80 in runup to April 3 Central Bank meeting. Maybe take another crack at it--on OIL break.

Got flat Aussie previous night session when 500pt down Nikkei barely dented carries, letting most of profit get away. Talk was of "Mid-Eastern" accounts. Central Banks involved in stabilizing other Asian currencies, Korea, Phillipines etc.
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rffrydr · Posted: Wed Mar 07, 2007 9:27 am Post subject:

Stronger-longer supercycle still burning bright:

http://www.bloomberg.com/apps/news?pid=20601081&sid=atSyzoAY2HYA&refer=australia
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rffrydr · Posted: Mon Mar 05, 2007 8:17 pm Post subject:

Private Equity showing strains down under:

Private equity is starting to run into trouble Down Under. On Wednesday, minorities blocked a proposed Dollars 1.3bn private equity-financed management buy-out, on the grounds of price. Dissenting investors are grumbling about pricing and governance issues on other deals in the pipeline. Just a few days earlier, Standard & Poor's warned of heightened credit risk due to Australian private equity deals. Could worries spill over into other markets in the region?

Australia is the private equity fraternity's favourite stomping ground in the Asia-Pacific, accounting for more than a third of the region's deals since the start of 2006, according to Dealogic. There are several reasons for this. Australia is more attuned to western trends; the commodities boom brought investors flocking to its shores; and industry liberalisation has opened up whole new areas, such as media. The regulatory framework is also conducive. Consider the government's nod to the Dollars 8.7bn buy-out of Qantas, the national airline. Beijing, meanwhile, has yet to sign off on Carlyle's proposed Dollars 375m acquisition of a controlling stake in a machinery maker - 16 months after the deal was agreed.

The flipside, of course, is that the market is more mature. Australia has notched up Dollars 23bn worth of deals since the start of 2006, representing 19 per cent of total merger-and-acquisition volumes, roughly in line with international levels. It is a relatively small market and many of the obvious targets have been snapped

up. Hence the more adventurous tilts at targets such as Qantas, where cash flows are less stable and the ability to load on debt more limited. The other problem is that Australia has the world's fourth biggest pool of investment funds, largely courtesy

of the country's pension scheme, and an increasing portion of this money is winding up in private equity funds. If mom-and-pop investors squeal, government policy towards private equity could turn less accommodative.

Source Citation: "Australian private equity LEX COLUMN.(LEX COLUMN)(Column)." The Financial Times (March 1, 2007)
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rffrydr · Posted: Mon Mar 05, 2007 12:54 am Post subject:

Damn, why don't I have an elephant gun! You're last great hunter, my Good Man! Usually they use "late" to rhyme with that but....

I guess the good shorts really lay it out there. Like Bill says, we only get to be right two hours a day. If that's the open and close I'll work those hours Mad

p.s. Maybe can catch up with my aussie shorts. Gold looks supportive here too. ISM should be good too--but it's not really about that anymore. Seems like just last week that the Chinese were down 9% (yes, and two weeks before that!) Lotta spreads on leverage on spreads working now

http://economist.com/finance/displaystory.cfm?story_id=8674169
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Goodfella · Veteran Poster Joined: 14 Oct 2005 Posts: 301

Dropped 2.7% today. some support here so might get a bounce - but the way these markets are set up we might not get one for another 20% Laughing

lion hunter · Senior Poster Joined: 27 Mar 2006 Posts: 130

The market in Oz would have rolled a long time ago if it weren't for our superannuation funds bidding it up. 9% of everyones salary is working its way into the market.

rffrydr · Posted: Sat Mar 03, 2007 10:37 pm Post subject:

Meanwhile economy crumbles from the weight of this success:

http://www.theaustralian.news.com.au/story/0,20867,21313040-20142,00.html
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rffrydr · Posted: Sat Mar 03, 2007 10:26 pm Post subject: