Flashcards in Australian Financial Review Deck (88):
large and heavy. He realised that refinancing would trigger a hefty increase in repayments.
(of an event regarded as threatening) seem about to happen. Thousands of home owners face a looming financial crunch.
not sufficiently strict, severe, or careful. Who blames lax lending standards for looming squeeze on home buyers.
call out to (someone) to attract attention. praise (someone or something) enthusiastically. Prime Minister Malcolm Turnbull hailed the result. "what a great job number today."
In a way that is full of danger or risk. Wall street's abrupt turnaround on Tuesday provides a timely demonstration of just how quickly air pockets can open up in market trading at perilously high valuations.
counter-attack. China could be threatening financial retaliation if Washington continues to block Chinese acquisitions, or if the Trump administration decides to impose tariffs on Chinese imports.
ramp up (v)
increase. This means that US government will be ramping up its bond issuance, at a time when US Federal Reserve is shedding US$US600 billion of bonds from its balance sheet each year.
wary and unwilling to take risks. Others, however, are likely to be far less circumspect.
cause (someone) to become hostile. Already top European and Japanese officials have run the risk of antagonising the Trump administration by voicing their displeasure.
walk in an awkward way (v). The problem is that no country wants to be hobbled an overvalued exchange rate
Institute legal proceedings against (a person or institution). Leading Australian accounting firm BDO is being sued over an allegedly "misleading and deceptive" IER.
a form of written command in the name of a court.
Kosbah lodged the writ against BDO, claiming erroneous valuation statements.
critical observation or examination. ASIC last year announced it would be increasing scrutiny of independent expert reports.
producing a great deal of profit. Perth, meanwhile, is home to many small-cap mining companies, making it a lucrative place for accounting companies such as BDO to provide IER to boards.
schedule. The prevailing market for zinc is in the better shape than it has been in over a a decade and the time is now for Ironbank to position itself to obtain the funding needed to put the Citroen project into construction in 2018 with mining slated for 2019.
outwardly (v). to be off the chart (adj)
externally. He may not appear to be outwardly panicking but if you measured his bio-hormonal stress levels, it would be off the charts.
famous. That's how renowned trader Chris Cole described the state of financial markets in a private gathering of traders in Sydney recently.
measure. The key indicator of volatility is the VIX Index, known as fear gauge.
live off (on) (phrasal verb) starve (v)
depend on as a source of income. suffer or die from hunger. Adjusting for risk, last year was the best year ever to be a share market investor, but if you live off the market's moves you are being starved.
in an ironic (sarcastic) manner. "How very noble", Oliver said ironically. But ironically they have collectively been losing out to day traders.
rapid increase in the number or amount of something. The proliferation of ETFs tied to the VIX has allowed the likes of Seth Golden, to make millions.
A person who gambles or makes a risky investment. These products were created to allow punters to hedge against market shock.
unbelievable. By thier maths, a not-inconceivable 50 percent spike in the VIX would force these funds to buy VIX contracts more.
hoover up (v). pile into (v)
suck into a vacuum cleaner. get into a place or something such as a car. Credit Suisse analysts believe we have entered a period of structurally lower volatility as central banks hoover up risky assets, investors pile into risky assets.
set off (v)
begin a journey, embark. But the question is what will set off the panic?
a house of residence. In Sydney there is actually an estimated 1.5 million unused bedrooms spread across 900,000 dwellings.
do something unexpectedly. Treasurer Scott Morrison upped the ante on personal tax cuts this year saying "people will see personal income tax cuts before big companies will see company tax cuts".
a confident and forceful statement of fact or belief. The IMF report directly contradicts Labor's assertions the United States' cut to company tax would have no impact on the rate of global economic growth
take (an opportunity) eagerly and decisively. Mr. Morrison seized on moves by the IMF to revise up its forecast for world economic growth in 2018 and 2019.
crack down (v)
to take severe or stern measure. He promised there would be no loss of public services as a result of income tax cuts, which he said would come as the government continues to crack down on corporate tax avoidance and diverted profits moves
ratchet up (v)
to increase something over a period of time. That's the view of analysts at Morgan Stanley that ratcheted up their IOOF earnings estimates on Thursday.
put right. correct. The fund's underexposure to resources has been rectified in recent months, with BHP Billiton and Rio Tinto added.
contrary to the accepted or expected standard (v). Perhaps it's the exceptionally heavy snowfall, or a somewhat perverse reaction to the euphoric mood of global business leaders, but some of the world's most astute market observers have adopted a decidedly cautious tone in their utterances at the WEF in Davos.
jolt (n, v)
an abrupt rough or violent movement. Everything is pretty good, with a big jolt of stimulation coming from the changes in tax laws.
flood. overwhelm (someone) with things or period to be dealt with. I think banks have a lot of cash, corporations have a lot of cash- so we're going to be inundated with cash
bring into effective action. This rush by people to deploy their cash, he said, was classic "late cycle behaviour".
created or arranged in a way that seems artificial and unrealistic. People look back and try to find something- the Smooth-Hawley tariff negotiation, something like that- but it sounds contrived.
stave off (v)
to stop something bad from happening. Women are having less but not little enough to stave off the damage salt cant do.
restrain or keep in check. Making an accurate national assessment is essential to curb the problem.
(of a living organism or cell) separate and expel as waste. Salt would be fatal if your kidneys did not excrete it as fast as you eat it.
a sour-tasting liquid containing acetic acid. While lemon juice, vinegar, herbs, spices and nutritional yeast are all well known substitutes for salt, a good start is to eat more fresh food.
fearless or adventurous. It is no accident that small and intrepid miners are doing well.
standout (n. adj)
a person or thing of exceptional quality or ability. exceptionally good. Oklo resources, a gold miner, was another standout.
dire (adj) (inf)
of a very poor quality. The resource market's been pretty dire until about mid-2015.
hollow (sth) out
to make an empty space inside something. When you have a five, six year bear market, it tends to hollow out the industry a little bit.
torch (v) (inf)
ignite. set fire to. The bear market in commodities has torched many other specialist strategies.
feeling or showing caution about possible dangers or problems. Oil prices slid for a second day, driven by ongoing evidence of rising US crude output, while way investors sold off stocks, bonds and commodities.
fall suddenly, clumsily. US stocks fell for a second straight day with the DJIA tumbling more than 400 points at one point.
ward off (v)
to ward off a danger or illness means to prevent it from affecting you or harming you. With oil's negative correlation to the US dollar reaching its strongest in a month, even continued signs of robust demand for crude were not enough to ward off profit taking following last week's rise to three-year highs.
notch up (v)
score or achieve (something). The US S&P 500 index has notched up a gain of 6.7 per cent so far this year.
shied away (v)
to avoid someone, or to be unwilling to do something, because you are nervous, afraid, or not confident. Investors started selling bonds on fears that a sharply lower US dollar would reignite inflation and trigger a collapse in the bond market as foreign investors shied away from buying US financial assets.
strange and frightening. In an eerie parallel, Mr Mnuchin last week sent the greenback tumbling to its lowest level in three years.
reduce (something) in size. The US dollar pared its losses against major currencies after US President Donald Trump told CNBC that "ultimately I wanted to see a stronger dollar".
spur (n, v)
a thing that prompts or encourages someone, an incentive. Analysts say that the Trump administration's tax overhaul package should spur the repatriation of some of the trillions of dollars of profits that US companies have parked offshore.
reduce something in size, amount, or extent by gradual series of steps. Meanwhile, the US Federal Reserve is expected to follow through with its plans for three US rate hikes this year, and has already started whittling down the size of its balance sheet.
sky-high. At the same time, higher yields on low-risk bonds could cause investors to question their enthusiasm for a share market that is trading at extremely lofty levels.
admit or agree that something is true after first denying or resisting it. Many of these same voters conceded there was no viable alternative to replace Abe within the LDP or among the opposition.
capable of working successfully, feasible. There was no viable alternative to replace Abe.
evoking interest, attention, or admiration in a powerfully irresistible way. enthralling. What Abe lacks is a compelling narrative and not just on the economy, says Koo.
the act of stimulating the economy by increasing the money supply or by reducing taxes. The 3R's - reflation, re-leveraging and re-convergence - reinforce our bullish overweight commodity outlook.
the action or fact of reducing or restricting something. Strong demand growth against limited supply growth due to OPEC and Chinese supply curtailments created a significant reflation in commodity prices last year.
coordinated. The concerted selloff that landed on stocks and bonds this week may be a taste of what's to come for financial markets.
lose one's balance and stagger or lurch violently. Consider Tuesday, when a rise in Treasury yields sent stocks reeling while oil and the US dollar also fell. Investor had nowhere to hide.
spill over (v)
(of a bad situation or strong emotion) reach a point at which it can no longer be controlled or contained. A pull-back in one for idiosyncratic reasons would likely spill over to the others.
rule out (v)
to make impossible, prevent. Although it is not part of his core thesis, he says such a move cannot be ruled out.
a feeling of smug or uncritical satisfaction, self-admiration. I do think complacency was a serious risk, but there are a lot fewer complacent people than there were a month ago.
be constantly or visibly anxious. what arguably investors have failed to recognise as they fret about market stability.
lower in rank or quality. Mr Temple says this is also the key to understanding why populism remains a risk to the US and to a lesser degree to Europe, over the next 10 years.
(with reference to a feeling or emotion) disappear or cause to disappear. If wealth continues to increase, maybe the populist instinct dissipate.
having or showing high moral standards, high-minded. Which drives housing prices higher, which then deeds into the middle class balance sheet and you get a virtuous positive cycle.
an event with a powerful and unpleasant effect. Borrowers with hundreds of billions of dollars in low cost interest-only loans could be facing a "double whammy" as reset of their loans coincides with expected with expected interest rate rises.
something necessary or indispensable: food and shelter. It believes those potentially facing "some financial stress"- defined as where an individual worries about their finances or cannot afford "necessities".
compress (something) into small folds or ridges. He warns a relatively small rise in interest rates by households would crimp spending and squeeze many household budgets.
comparable in certain respects. It could mean a very large increase in repayments, which is analogous to higher hike in interest rates.
a very steep rock face or cliff. Ms Hickie dismisses suggestion interest-only loans are "nearing a precipice".
involving calamity, catastrophic or disastrous. Which means they could tigger a calamitous plunge in housing market prices.
money that is owed and should have been paid earlier. The proportion of securitised mortgages in arrears as at December 2017 was 1.2 per cent.
exert a modifying or controlling influence on. regulate. The warning from one of the country's largest banks comes even as the RBA modulates its rhetoric on property risks.
the easing or alleviation of a person's feelings of grief or distress. ANZ believes the RBA's comfort with how risks in the housing market are evolving "may be misplaced".
(of a tax or other charge) extremely high. This looks very unlikely with a cash rate of 1.5 per cent, unless APRA adopts a punitive set of new lending restrictions.
(of a state or feeling) decrease in vigour or extent. The chances of tighter monetary policy taking the heat out of housing markets are waning.
(of something unpleasant or severe) become less intense or widespread. NAB pointed to the "depressing trend" of weak wages growth, which showed no immediate signs of abating.
Vow (n & v)
a solemn promise. solemnly promises to do a specified thing.
quick and light in movement or action. agile. Instead more creative and nimble providers like HPS Investment Partners have stepped up the plate.
widespread in a particular area at a particular time. these provide much higher gearing levels compared to more traditional banks and are now very prevalent in deals.
critical observation or examination. Credit conditions have tightened, banks are under more scrutiny (evidenced this year with the royal commission).
name after (v)
Give someone or something the name of another person or place. They named the baby after his grandfather.