Investment Strategy

As the year draws to a close, it is time to take a look back at the strategy outlined at the beginning of the year and the events that have marked 2019.

SEEK Limited (‘‘SEEK’’) is a company incorporated in Australia and limited by shares. SEEK is listed on the ASX and as of today has market capitalisation of AUD7.8bn. SEEK is a diverse group of companies that has a unified purpose to help people live more fulfilling and productive working lives and to help organisations succeed.

With the news this week of the resignation of the Chairman and CEO of Westpac in reaction to the AUSTRAC reporting issue, we examine the price movement in various securities issued by the Bank.

Ford Motor Credit (Ford) offers a wide variety of automotive financing products to and through automotive dealers throughout the world. The predominant share of Ford’s business consists of financing Ford and Lincoln vehicles and supporting dealers of those brands.

David Jones Finance (David Jones) has mandated NAB to launch a six-year maturity, senior secured floating rate note (FRN). The deal is expected to price before the end of the week.

EQM owns and operates a network of natural gas pipelines in the Marcellus and Utica formations in the Appalachian Basin, the largest source of natural gas in the United States.

The US HY bond index has experienced double digit growth year to date, with just over a month till the end of the year it is worth highlighting our current top picks in the sector.

Risk assets have rallied significantly in the past couple of weeks and this has seen the government yield curves steepen and move higher.

Australian major bank Tier 2 sub-debt issuance has picked up since the middle of this year following the APRA announcement of additional capital requirements for banks

Virgin Australia Holdings Limited (Virgin) has issued two new bonds in the recent few weeks leading to repricing of the existing AUD issuance

The bond market constantly throws up opportunities for investors to maximise the risk/reward equation on investing their capital. Here we consider our current top picks in fixed, floating and inflation linked bonds.

Following strong client demand we have added bank Tier 1 securities and deeply discounted bank subordinated paper (‘discos’) to our offering.

Verizon Communications Inc (Verizon) is a New York based company, which provides communications, information and entertainment products and services to consumers, businesses and government agencies worldwide.

Origin Energy (ORG) is an integrated energy company focused on gas and oil exploration and production, power generation and energy retailing in Australia.

Virgin Australia Airlines Pty Ltd, commonly referred to as Virgin Australia, is one of Australia's largest airlines, and it is the largest airline by fleet size to use the Virgin brand.

ASX listed Australian property group, Dexus, has mandated SMBC Nikko and Westpac to arrange a new 10 year senior unsecured bond transaction. The new bond will be issued by Dexus’ funding arm, Dexus Finance Pty Ltd.

As interest rates move lower, investors are taking on more credit risk to compensate for the drop in yield. While higher risk does offer higher return, it is important to maintain adequate portfolio quality and diversity. The Queensland Treasury Corporation (QTC) 6.50% 2033 bond offers a strong income stream while providing exposure to a liquid and low risk government credit.

New DirectBond – The Goodyear Tire and Rubber Company

I initially wrote this article back in May when the RBA had explicitly stated that it is open to cutting the overnight cash rate. Since then the RBA has cut twice to the current cash rate of 0.75%.

Following enquiries from clients we have published a report looking at the performance of USD HY by ratings and relative value in this sector.