Episode 15: Coronavirus Special, Central Bank Action, Next Crisis To Be Triggered by Subprime Corp Loans, Aussie Housing


Manage episode 255622424 series 2496631
By Coolabah Capital Investments. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Welcome to the Complexity Premia podcast from Coolabah Capital, which is hosted by Christopher Joye, CIO and portfolio manager of Coolabah Capital, and Ying Yi Ann Cheng, a portfolio management director. The Complexity Premia podcast strives to deconstruct modern investment problems for wholesale (not retail) participants in capital markets. You can listen on your favourite podcast app, or you can find it on Apple Podcasts or Podbean.

In this episode we discuss a range of issues, including the current market meltdown that is rapidly emulating aspects of the GFC and which will eventually present some once-in-a-generation buying opportunities:

  • We discuss how COVID-19 is a classic case of global market failure driven by extreme information asymmetries, which Chris has repeatedly explained in his AFR columns over the last couple of weeks;
  • How central banks need to move quickly to provide a liquidity bridge to keep markets functioning given investors are struggling to realistically price existential pandemic risks (again as outlined in Chris' AFR columns of late);
  • How the biggest risk is if central banks delay or under-club their response as lenders of last resort, which markets will punish, especially given they are rapidly depleting their prized credibility;
  • Why the next subprime crisis will likely be triggered by subprime or high yield corporate bonds, which has been another key theme of ours for a while now; and
  • Update on our views regarding the Australian residential property market, which we expect to remain strong.

This information is suitable for wholesale investors only and has been produced by Coolabah Capital Institutional Investments Pty Ltd ACN 605806059, which holds Australian Financial Services Licence No. 482238 (CCII). The views expressed in this recording represent the personal opinions of the speakers and do not represent the view of any other party. The information does not take into account the particular investment objectives or financial situation of any potential listener. It does not constitute, and should not be relied on as, financial or investment advice or recommendations (expressed or implied) and it should not be used as an invitation to take up any investments or investment services. Whilst we believe that the information discussed in the podcast is correct, no warranty or representation is given to this effect, and listeners should not rely on this information when making any decisions. No responsibility can be accepted by CCII to any end users for any action taken on the basis of this information. Any performance data presented on this site is pre-fees for institutional clients that negotiate custom fee rates, and these solutions are not available to retail investors. No investment decision or activity should be undertaken without first seeking qualified and professional advice. CCII may have a financial interest in any assets discussed during the podcast. Listeners in Australia are encouraged to visit ASIC's MoneySmart website to obtain information regarding financial advice and investments.

27 episodes