The issue of ownership dilution when companies raise new capital has always had routine attention. But it has not been as prevalent as in recent times, as companies face the brunt of global lockdowns in response to COVID-19.
Delve into modelling how new capital raisings affect the wealth of shareholders, by Andrew He, Jimmy Xu and Gary Palar, here.
“… the government’s ‘Job Keeper’ package comes as a desperate attempt to keep people employed and prevent a further spiralling of the economy… Westpac chief economist Bill Evans stated that unemployment could have peaked at 17% had it not been for the Job Keeper package… ”
Read in as Anton Mifsud, Victor Yan and Lucinda Chen discuss the economic intuition and more behind the Federal Government’s latest ‘Job Keeper’ program.
With economic contractions generally occurring gradually and thus providing policymakers with time to adjust accordingly, the coronavirus threat has effectively forced governments across the world to pause activity through lockdowns and social distancing measures.
Starting with an overview, read in as Research Analysts Lucy Chen, Victor Yan and Anton Surace discuss COVID-19 and how it is impacting Australia’s economy in UNIT’s latest piece ‘The CoronaCrisis’, here:
Superannuation is extra money your employer legally has to pay into your super account to fund your senior years. But what do you have to do, where does it go and what should you be careful of?
Find out all this and more in UNIT Research Analyst Samantha Lai’s interest piece ‘Superpowers of Superannuation’.
Once more, the world’s most pivotal central bank has begun to grow its balance sheet; yet this had already begun prior to Covid-19… It is for this reason that we already know how central banks will respond to perhaps the most economically consequential pandemic since 1348.
To read more about the place of quantitative easing in the current climate, check out Research Analyst Sam Triantafillopoulos’s latest piece ‘The Everything Stimulus’ here.
As central banks across the world scramble to slash rates and buy treasuries in an attempt to stave off an impending economic recession, little thought is paid to the effect cheaper debt will have … leading to ignorance of the risk that zombie companies pose to a post-crisis economy.
To read more about cheap debt and zombies, check out Research Analyst Louis Portail’s latest piece ‘Market Zombies: The Cost of Cheap Debt’.
Over the past decade, the issue of climate change has leapt to make headlines on newspapers around the globe … with the ever-increasing numbers of Greenhouse gases in the atmosphere.
In UNIT’s first interest piece for 2020, Research Analysts Gary Palar and Alice Fan provide insight into ‘The Solar Response to Climate Change’.
While a home purchase tends to appreciate over time, a car will do quite the opposite. Being a depreciating asset, the value declines once the wheels leave the dealership, bar a select few luxury vehicles. In times of low consumer confidence, luxury items such as vehicles are the first to experience declines in sales.
Through sound economic management and some good fortune, the “lucky country” has experienced an unbeaten run of twenty-seven years of Gross Domestic Product growth, overcoming the turmoil of the Global Financial Crisis and instability of a globalised economy.