We all know that interest rates have gone up a lot. Yet analysts struggled to forecast how much that will hurt corporate profits now and in the future.
Barrenjoey, Macquarie, JPMorgan and UBS are market leaders in ASX-listed stock research, but investment banks are hamstrung by less capital for research.
There has been a historic convergence of Australian short-term bond yields and sharemarket dividend payouts, which hint at an ongoing shift by investors into fixed income.