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Kevin Davis

The future of bank hybrids is open to question

APRA is reviewing hybrid capital bonds issued by banks. This is hardly surprising since the demise of Credit Suisse showed they don't work for the purpose that they are designed, and their continued use must be questioned.

A helping hand for Treasurer Chalmers’ proposed taxonomy

Treasurer Jim Chalmers says he will “create a new sustainable finance architecture, including a new taxonomy to label the climate impact of different investments." Here are some tongue-in-cheek suggestions to help him.

Why a $5 coin and not a $5 note repays public debt

Did anyone tell the Treasurer that if he had replaced the $5 note with a $5 coin, he could have saved $1 billion? The Government makes a profit from minting coins but we still need to decide whose face we want.

The proposal on capital raisings and franking is misguided

In proposing to prevent certain franked distributions that are funded by capital raisings, the Government is addressing the wrong problem, and the solution lies in this week's 2022 Budget announcement on buybacks.

Superannuation funds should be long-term lenders

It makes sense to have long-term savings directed to financing long-term investments and short-term savings (which involve liquidity risk for the institutions accepting them) invested in shorter term investments.

An opt-in, universal pension can fix several super problems

With considerable resources spent on qualifying for the age pension and grappling with super consequences, there have been regular calls for a universal pension. How might it work and what are the benefits? 

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Investment strategies

Investors are threading the eye of the needle

As investors cram into ever narrower areas of the market with increasingly high valuations, Martin Conlon from Schroders says that sensible investing has rarely been such an uncrowded trade.

Economy

New research shows diverging economic impacts of climate change

There is universal consensus that the Earth is experiencing climate change. Yet there is far more debate about how this will impact different economies across the globe. New research sheds more light on the winners and losers.

SMSF strategies

How super members can avoid missing out on tax deductions

Claiming a tax deduction for personal super contributions can end in disappointment if it isn't done correctly. Julie Steed looks at common pitfalls and what is required for a successful claim.

Investment strategies

AI is not an over-hyped fad – but a killer app might be years away

The AI investment trend looks set to continue for years but there is only room for a handful of long-term winners. Dr Kevin Hebner also warns regulators against strangling innovation in the sector before society reaps the benefits.

Retirement

Why certainty is so important in retirement

Retirement is a time of great excitement but it is also one of uncertainty. This is hardly surprising given the daunting move from receiving a steady outcome to relying on savings and investments.

Investment strategies

Have value investors been hindered by this quirk of accounting?

Investments in intangible assets are as crucial to many companies as investments in capital equipment. The different accounting treatment of these investments, however, weighs on reported earnings and could render ratios like P/E less useful for investors.

Economy

This vital yet "forgotten" indicator of inflation holds good news

Financial commentators seem to have forgotten the leading cause of inflation: growth in the supply of money. Warren Bird explains the link and explores where it suggests inflation is headed.

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