Our independent credit research provider, CreditSights, has revised its sector recommendations for Car Rental to ‘Selective Risk Taking’. There is no change to the credit and indicatively yielding over 7.90%pa, the Hertz 2022 is an appealing short dated US dollar offering.

Centuria Capital No. 2 Fund (Centuria) is launching a new transaction, seeking to raise up to AUD100m of senior secured notes maturing in April 2023. The transaction will include one floating rate tranche and one fixed rate tranche, both offering a yield in the region of 6.50%.

The DirectBond filter lists have been updated for September 2018.

Port of Melbourne's inaugural AUD issuance is expected to be in demand due to its investment grade rating as well as the stability and predictability of its cash flows. However, we do not believe it offers value at the indicative pricing of below 4.00%.

The French Bank, BNP Paribas, is to issue an Australian dollar Tier 2 style bond. The investment grade 15 year bond callable after 10 years is expected to price around 5.00$ yield which equates to a margin of BBSW +2.20%.

Nufarm's April 2026 bond is the recent inclusion to the DirectBond list and available to wholesale investors. The US dollar bond trades at a discount to its issue price, providing an appealing entry point for investors who are comfortable with the investment grade risk.

Heathrow Airport's inaugural AUD issuance is expected to receive strong investor demand due to its investment grade rating and stable and predictable cash flow.s The bond offers reasonable value with trading margin of circa BBSW+1.40% and fits our theme of extending duration in Australian dollar denominated investment grade bonds. Nevertheless, we see better relative value elsewhere with these bonds also carrying additional interest rate risk.

Harvey 2018-1 is Credit Union Australia’s (CUA) first transaction for 2018. It is a prime RMBS supported by a good quality pool of collateral

Adani Abbot Point Terminal (AAPT) is the financing subsidiary for the companies holding the lease on the Abbot Point Coal Terminal. AAPT’s 4.45% Dec 2022 USD bond looks attractive as a 4 year investment with an indicative yield above 7.25%.

Eric Insurance released its FY18 results

Inflation linked securities should be in every fixed income portfolio. These securities protect investors against inflationary pressures while maintaining a steadily growing income flow.

Australian corporate predominantly issue fixed rate bonds leading to a limited offering in floating rate notes (FRN) particularly in investment grade.

Nufarm released its FY18 results and concurrently announced a AUD303m equity raising.

This transaction is CBA's first public RMBS term out deal for 2018 and the biggest RMBS transaction fo the year.

Axsesstoday has extended its share suspension and provided further details on its current review, including certain senior bank debt term renegotiations linked to technical breaches.

Adani Abbot Point Terminal (AAPT or the Issuer) is the financing subsidiary of the group of companies holding the 99-year long term lease on the Abbot Point Coal Terminal (acquired from the Queensland Government in June 2011).

Sydney Airport Finance Company Pty Limited (SAFC) is a wholly owned financing subsidiary of Sydney Airport Corporation (SACL). SACL is the lessee and operator of Sydney’s Kingsford Smith Airport (KSA), Australia’s largest airport, under a long term lease granted by the Commonwealth Government.

Adani Abbot Point Terminal (AAPT or the Issuer) is the financing subsidiary of the group of companies holding the 99-year long term lease on the Abbot Point Coal Terminal (acquired from the Queensland Government in June 2011).

Dean Foods is a medium term US dollar bond for wholesale investors that are comfortable with sub investment grade credit risk in return for yield circa 7.375%.

The price of the Qantas 2022 bond has peaked and is gradually moving towards par as the bond moves closer to maturity. This price movement is eroding the total return of the bond as lower price offsets running yield (yield from coupons). Investors should consider exiting this bond at the current premium and investing in longer dated bonds with higher overall yields.