Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

Commonwealth Bank of Australia / Equity Bottom-Up

<ul class="">
<li>Banks operating in New Zealand must raise Tier-1 capital from 12% to 16% of risk-weighted assets over seven years. </li>
<li>The big four Australian banks, who hold 90 percent of deposits in New Zealand, saw their share prices move in knee-jerk reaction. </li>
</ul>
<ul>
<li>The announcement adds to the existing headwinds such as consumer remediation costs, weak economic outlook, lower interest rates, and the rise of digital-only banks. </li>
</ul>
<ul>
<li>Based on their latest financials and exposure to New Zealand, I pick my favourite and least favourite bank stocks among the Big Four.</li>
</ul>


Banks operating in New Zealand must raise Tier-1 capital from 12% to 16% of risk-weighted assets over seven years. 
The big four Australian banks, who hold 90 percent of deposits in New Zealand, saw their share prices move in knee-jerk reaction. 


The announcement adds to the existing headwinds such as consumer remediation costs, weak economic outlook, lower interest rates, and the rise of digital-only banks. 


Based on their latest financials and exposure to New Zealand, I pick my favourite and least favourite bank stocks among the Big Four.


New Zealand's New Capital Buffer: Prefer CBA Over The Other Big Three

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>New CEO steps in to deal with AML mess. </li>
<li>Fines set to range between AUD 12.3 bn to AUD 301 bn, implying 2xd consensus or 3x market-cap and this is prior to Americans taking their pound of flesh.</li>
<li>Expect a significant capital raise.  </li>
</ul>


New CEO steps in to deal with AML mess. 
Fines set to range between AUD 12.3 bn to AUD 301 bn, implying 2xd consensus or 3x market-cap and this is prior to Americans taking their pound of flesh.
Expect a significant capital raise.  


Westpac - Let's See How The New CEO Handles These Fines

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Westpac Group announced an AUD 2.5 billion capital raising plan this morning, via a fully underwritten AUD 2 billion institutional placement and an AUD500 million non-underwritten share purchase plan. We think this deal is well expected, as the banking regulator APRA has been working on plans to strengthening the balance sheet since 2018. Corresponding to the changes, Macquarie Group, Westpac's peer, has done an AUD 1 billion deal in August.For the Westpac deal, although it will dilute the company's share base, it does come with a deep discount that warrants a trade.

Westpac Group announced an AUD 2.5 billion capital raising plan this morning, via a fully underwritten AUD 2 billion institutional placement and an AUD500 million non-underwritten share purchase plan. We think this deal is well expected, as the banking regulator APRA has been working on plans to strengthening the balance sheet since 2018. Corresponding to the changes, Macquarie Group, Westpac's peer, has done an AUD 1 billion deal in August.For the Westpac deal, although it will dilute the company's share base, it does come with a deep discount that warrants a trade. 

Westpac Placement: An Expected EPS Dilutive Deal but Discount Is Deep

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

The probability for a breakout for global equities (MSCI ACWI) has increased in the past week based on several positive technical developments which we highlight below. Still, there are several indicators that continue to tell us we are not yet out of the woods. In this report we outline key technical levels and drivers across major markets, and highlight attractive set ups in the following areas: European &amp; UK Banks, Exchanges/Markets, Asset Managers, and Insurance, Major Autos and Communications.

The probability for a breakout for global equities (MSCI ACWI) has increased in the past week based on several positive technical developments which we highlight below. Still, there are several indicators that continue to tell us we are not yet out of the woods. In this report we outline key technical levels and drivers across major markets, and highlight attractive set ups in the following areas: European &amp; UK Banks, Exchanges/Markets, Asset Managers, and Insurance, Major Autos and Communications.

Global Equity Strategy: Bullish Breakout Probability on the Rise

TSE Tokyo Price Index TOPIX / Technical Analysis

Continue to favor EAFE over EM. As long as the U.S. dollar remains elevated, we believe  developed international (EAFE) will remain in a leadership position relative to EM (MSCI EM). In this report we highlight actionable set ups within Japan, Switzerland and Australia. Within Japanese Sectors, we focus on opportunities within Technology, Financials, Health Care, and Staples. We also highlight attractive setups within European/UK Sectors, including Health Care, Industrials, Staples and Utilities.

Continue to favor EAFE over EM. As long as the U.S. dollar remains elevated, we believe  developed international (EAFE) will remain in a leadership position relative to EM (MSCI EM). In this report we highlight actionable set ups within Japan, Switzerland and Australia. Within Japanese Sectors, we focus on opportunities within Technology, Financials, Health Care, and Staples. We also highlight attractive setups within European/UK Sectors, including Health Care, Industrials, Staples and Utilities.

Australia

Westpac Banking Corporation offers general and savings banking services.  The Company provides investment portfolio management and advice, insurance services,  consumer finance, and money market services among other services.  Westpac Banking Corp. serves individuals, businesses, and corporations worldwide.

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Westpac Banking (WBC AU)

New Zealand's New Capital Buffer: Prefer CBA Over The Other Big Three

Banks operating in New Zealand must raise Tier-1 capital from 12% to 16% of risk-weighted assets over seven years. The big four Australian banks,...

Valerie Law, CFA

Westpac - Let's See How The New CEO Handles These Fines

New CEO steps in to deal with AML mess. Fines set to range between AUD 12.3 bn to AUD 301 bn, implying 2xd consensus or 3x market-cap and this is...

Thomas J. Monaco

Westpac Placement: An Expected EPS Dilutive Deal but Discount Is Deep

Westpac Group announced an AUD 2.5 billion capital raising plan this morning, via a fully underwritten AUD 2 billion institutional placement and an...

Ke Yan, CFA, FRM

Global Equity Strategy: Bullish Breakout Probability on the Rise

The probability for a breakout for global equities (MSCI ACWI) has increased in the past week based on several positive technical developments...

Vermilion Research

Developed Markets Opportunities

Continue to favor EAFE over EM. As long as the U.S. dollar remains elevated, we believe developed international (EAFE) will remain in a leadership...

Vermilion Research

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