The fix is in
Managed-fund investors took more of their money out of Australian share funds and put it into fixed-income vehicles in 2012. Morningstar's Global Fund Flows Trend Report reveals investors withdrew more than $5.33 billion from the managed funds industry in 2012.
Banks can handle weakness
Rating agency Fitch says Australian banks are likely to face modest weakening in their operating environment in 2013. However, the banks remain strong enough to withstand such weakening. Fitch provided a stable rating outlook for the sector.
Sovereigns replace investors
Europe's central banks are taking over as leading buyers of Australia's bonds after Japanese investors offloaded ¥439.3 billion ($4.6 billion) in debt in January. "The little Aussie bond market is the fourth-biggest AAA in the world," Westpac's Damien McColough says. "Sovereign buying is filling the gap left by Japanese investors and our belief is that a lot of that is coming from the European central banks."