Market Minute: Stocks keep rising as rates move higher, private credit risks and the upcoming Firmus IPO

Morning Star AU10-06

Mark LaMonica: Mark LaMonica: Welcome to another edition of Market Minute. I’m joined by Michael here to talk through all that’s happening in markets. A lot happening in the fixed interest market. So ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2673838037?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-10-06 00:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2673838037","market":"hk","top_or_hot":-1,"title":"Market Minute: Stocks keep rising as rates move higher, private credit risks and the upcoming Firmus IPO","media":"Morning Star AU","content":"<div>\n<p>Mark LaMonica: Mark LaMonica: Welcome to another edition of Market Minute. I’m joined by Michael here to talk through all that’s happening in markets. A lot happening in the fixed interest market. So ...</p>\n\n<a href=\"https://www.morningstar.com.au/markets/market-minute-stocks-keep-rising-rates-move-higher-private-credit-risks-upcoming-firmus-ipo\">Source Link</a>\n\n</div>\n","source":"morningstar_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Market Minute: Stocks keep rising as rates move higher, private credit risks and the upcoming Firmus IPO</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMarket Minute: Stocks keep rising as rates move higher, private credit risks and the upcoming Firmus IPO\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-10-06 00:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.morningstar.com.au/markets/market-minute-stocks-keep-rising-rates-move-higher-private-credit-risks-upcoming-firmus-ipo><strong>Morning Star AU</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Mark LaMonica: Mark LaMonica: Welcome to another edition of Market Minute. I’m joined by Michael here to talk through all that’s happening in markets. A lot happening in the fixed interest market. So ...</p>\n\n<a href=\"https://www.morningstar.com.au/markets/market-minute-stocks-keep-rising-rates-move-higher-private-credit-risks-upcoming-firmus-ipo\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TRBF","symbol_name":"Angel Oak Total Return ETF","start_time":0,"source_url":"https://www.morningstar.com.au/markets/market-minute-stocks-keep-rising-rates-move-higher-private-credit-risks-upcoming-firmus-ipo","article_id":"2673838037","we_media_id":null,"thumbnails":[],"rights":{"source":"morningstar_stock","url":"https://www.morningstar.com.au/markets/market-minute-stocks-keep-rising-rates-move-higher-private-credit-risks-upcoming-firmus-ipo","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2673838037","pubTimestamp":1791216000,"columns":[],"sourceInfo":{"source_id":"morningstar_stock","name":"Morning Star"},"weMediaInfo":null,"summary":"So I know the the RBA is going to be looking closely at that and really wanting to get on top of on top of these inflation expectations going forward.Mark: And then let’s talk about, I guess, the wider fixed interest market. So we are still seeing yields going up. Is it getting to a point where this is potentially attractive for investors. Or is there still too much going on in terms of what’s going to happen with inflation going forward and central bank policy?","collect":0,"end_time":0,"defaultTopTitle":"morningstar.com.au","property":[],"viewcount":null,"language":"en","relate_stocks":{"TRBF":"Angel Oak Total Return ETF","RSF":"RIVERNORTH CAPITAL AND INCOME","PRSD":"STATE STREET SHORT DURATION IG PUBLIC & PRIVATE CREDIT ETF","AAUM":"Tema Alternative Asset Managers ETF","PLIB":"Direxion PLTR Defined Income Boost ETF","MUSI":"American Century Multisector Income ETF","AINP":"Allspring Income Plus Etf","SHYL":"Xtrackers Short Duration High Yield Bond ETF","BDCZ":"ETRACS MarketVector Business Development Companies Liquid Index ETN","HYXF":"iShares ESG Advanced High Yield Corporate Bond ETF","REDS":"RPM Republican Senate ETF","VGI":"Virtus Global Multi-Sector Incom","JPIE":"JPMorgan Income ETF","MILK":"Pacer US Cash Cows Bond ETF","FBDC":"FT Confluence BDC & Specialty Finance Income ETF","BIZD":"VanECk BDC Income ETF","CPLB":"NYLIM MacKay Core Plus Bond ETF","PSQO":"Palmer Square Credit Opportunities ETF","LRCY":"IncomeShares Lam Research LRCX Options ETP","OOSP":"Obra Opportunistic Structured Products ETF","KCE":"SPDR KBW Capital Markets ETF","DADS":"Digital Asset Debt Strategy ETF","JSCP":"JPMorgan Short Duration Core Plus ETF","BNDP":"Vanguard Core-Plus Bond Index ETF","PRIV":"SPDR SSGA APOLLO IG PUBLIC & PRIVATE CREDIT ETF","AAAP":"Pacer Barings CLO Market Flex ETF","BYLD":"iShares Yield Optimized Bond ETF","BHYB":"XTRACKERS USD HIGH YIELD BB-B EX FINANCIALS ETF","DVDN":"KINGSBARN DIVIDEND OPPORTUNITY ETF","CEFD":"ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN","CCIF":"CARLYLE CREDIT INCOME FUND","XAGG":"Eaton Vance Income Opportunities ETF","DYLD":"LeaderShares Dynamic Yield ETF","LBO":"WHITEWOLF PUBLICLY LISTED PRIVATE EQUITY ETF","PEVC":"PACER PE/VC ETF","PCLO":"Virtus SEIX AAA Private Credit CLO ETF","HISF":"First Trust High Income Strategic Focus ETF","KAMO":"Kensington Credit Opportunities ETF","HYSA":"BondBloxx USD High Yield Bond Sector Rotation ETF","KI":"Corgi Kioxia 2x Daily ETF","DMX":"DoubleLine Multi-Sector Income ETF","PCMM":"BondBloxx Private Credit CLO ETF","FIGO":"T-REX 2x Long FIG Daily Target ETF","AHHX":"Adaptive High Income ETF","UNIY":"WISDOMTREE VOYA YIELD ENHANCED USD UNIVERSAL BOND FUND","VPC":"Virtus Private Credit Strategy ETF","NBFC":"Neuberger Flexible Credit Income ETF","PBSC":"Pacer Barings Secured Credit Flex ETF","IPOS":"Renaissance International IPO ETF","AFIF":"Anfield Universal Fixed Income Etf"},"translate_title":"市场纪要：随着利率上升、私人信贷风险和即将到来的 Firmus IPO，股市持续上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DMX":1.5,"PRSD":1.5,"RSF":1.5,"NBFC":1.5,"KCE":1.5,"BNDP":1.5,"KAMO":1.5,"XAGG":1.5,"BYLD":1.5,"BHYB":1.5,"AAUM":1.5,"PRIV":1.5,"JPIE":1.5,"CCIF":1.5,"PBSC":1.5,"PEVC":1.5,"MUSI":1.5,"AHHX":1.5,"OOSP":1.5,"AAAP":1.5,"HYSA":1.5,"IPOS":1.5,"VGI":1.5,"BIZD":1.5,"CPLB":1.5,"PLIB":1.5,"PCLO":1.5,"PSQO":1.5,"AFIF":1.5,"AINP":1.5,"HYXF":1.5,"LRCY":1.5,"UNIY":1.5,"DVDN":1.5,"HISF":1.5,"MILK":1.5,"PCMM":1.5,"REDS":1.5,"FBDC":1.5,"SHYL":1.5,"FIGO":1.5,"DYLD":1.5,"LBO":1.5,"CEFD":1.5,"VPC":1.5,"KI":1.5,"TRBF":1.5,"DADS":1.5,"JSCP":1.5,"BDCZ":1.5},"content_text":"Mark LaMonica: Mark LaMonica: Welcome to another edition of Market Minute. I’m joined by Michael here to talk through all that’s happening in markets. A lot happening in the fixed interest market. So why don’t we start with two of the drivers. So central bank policy and inflation. So we did Michael Malseed: So we had the RBA increase the cash rate in Australia last week by 25 basis points bringing it to 4.6%. So that’s obviously going to put pressure on household budgets with higher interest repayments, which is aimed at slowing the economy and cooling inflation during the week. We also had the CPI print come out for Australia for August.The year on year number was up 4%, which is a pretty high number. The RBA does look at the underlying inflation number, which is more modest, but I think the headline number, including fuel prices, shows that that impact of what’s happening in the Middle East and, and the pressure on all prices is filtering through the economy. Certainly, transport costs were up about 14% year on year in that number.And the risk is that then trickling down into other segments of the economy through, you know, the shipment of goods and the cost of materials becoming more embedded in underlying inflation numbers? So I know the the RBA is going to be looking closely at that and really wanting to get on top of on top of these inflation expectations going forward.Mark: And then let’s talk about, I guess, the wider fixed interest market. So we are still seeing yields going up. Is it getting to a point where this is potentially attractive for investors. Or is there still too much going on in terms of what’s going to happen with inflation going forward and central bank policy?Michael: A lot looks to be priced into the long end of the yield curve. So if you look at the US ten year yields that hit about 5.3% last week which is you know a multi multi-decade really high. And so a lot is priced into that. And it’s probably starting to look quite attractive from an asset class point of view, particularly relative to equities which are trading at very high valuations.So what that points to is within a multi-asset balanced portfolio, bonds can certainly play a role in generating quite a reasonable return at this stage when when equities have quite high valuations.Mark: So one place a lot of investors have been turning over the last several years is to private credit. They’ve offered very attractive yields. But there has been some concerns recently around credit quality in those portfolios. And we did see, I guess, a bit of a dispute going on between auditors around those asset valuations. So maybe fill investors in on what’s happening.Michael: In the headlines in the last week the big story has been metrics. And there was a delay to the release of their financial statements due to a dispute with their auditor on valuations. So that was resolved at the end of last week, which resulted in write downs of around 170 million to the carrying value of the assets.Now, that’s probably around 4 or 5% of their total book. So it wasn’t wasn’t sort of a huge number. But it goes to show that there’s probably increased scrutiny on on valuations and maybe a little bit of increased concern at the underlying conditions in the market not being as supportive for some of the, you know, the underlying investments in the market.Now, metrics did have to pause liquidity during that period, but that’s coming back online now with the financial statements released, certainly private credits, an area where you want to understand the underlying investments and the risks and make sure you’re being compensated for for not only the lack of liquidity, but also the underlying operating conditions with to what they’re lending to.Mark: So a lot of the news that we’ve heard, of course, out of the US is around these big IPOs related to AI. So with anthropic scheduled for later this year and then potentially ChatGPT the year after in Australia, we have our own IPO coming up. So with firmus, can you share any thoughts on that.Michael: This is going to be a very large IPO in the context of the Australian market looking to raise about $7 billion. They’re doing the rounds currently looking come on on the market. In a couple of weeks. It will value the total business at around $43 billion on those numbers. So this is really from a standing start.It’s very early stage startup business building data centers. They’ve got the contracts in place which is underpinning the forecast forecasted revenue and earnings. But they really need to deliver on that. And they’re also going to be carrying quite a lot of debt to carry out the builds. So there’s a lot of question marks about how to value a business like that.And it’s going to be a real test of the market’s appetite for an IPO of this size.Mark: Let’s talk about the overall environment and I guess how investors should be thinking about it. So we’ve got yields going higher. That’s obviously bringing bond prices down. At the same time the equity market keeps going up. And as you said valuations continue to get more and more stretched. How should investor think about their overall portfolio right now.Michael: We would suggest to investors to stay diversified. And that would be diversification across asset classes as well as within asset classes. So we think that at the at the moment, volatility is likely to be a feature of the market given where valuations are. And you really want to have a resilient portfolio that when volatility arises, you can use that as an opportunity to rebalance into and have a portfolio that’s going to have resilience through opportunity through volatility.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.52.0","shortVersion":"4.52.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2673838037","isCrawlerRequest":true}