Interesting to see tha treasury management at play here. At-call or Term Deposits (TD) in AUD domiciled in Australia would earn a much higher rate that US treasuries. Im no bond trader but with pending rate rises in the US wouldnt bond prices go down? It would all depend on the forward curves but it could surprise the market and rise faster/higher than expected meaning a drop in bond prices. Wouldnt they invest where capital was assured if they needed to liquidate prior to maturity? I do understand that rising rates may result in a weaker AUD so that would make it better to move the AUD back to USD. But why not just put it in a TD or a fixed income product where capital retention was pretty much guaranteed regardless of the timing of liquidation.
@AllFuelledUp mate, we agree on many levels. I dont think i have read a comment of yours and thought 'nah, disagree'. AFY, the next tech to fall once people realise they wont get their capital back for yyyyears..
um no. It means the market think the product stinks and that spending is too high
&
really? like what?
Dont worry, we wont. Oscar, if anyone took your word for it hey'd be down.. what.. may be 50%? My suggestion is to be a bit less definite in your arguments.
1PG Price at posting:
16.0¢ Sentiment: Hold Disclosure: Not Held
