Investment Strategy

Credit spreads have tightened materially since the dislocation experienced in March this year, however prices have not fully recovered, providing an investment opportunity in the USD space.

The newest additions to FIIG’s USD DirectBond list are two investment grade (IG) rated corporate hybrids issued by BP Capital. These newly issued securities offer strong relative value.

Investors are having to adjust to the riskier nature of equity investing as more and more companies reduce, cancel or defer dividends. Those with a truly diversified portfolio should however be cushioned from this loss in income, thanks to the regular cashflow from a low risk bond portfolio.

The coronavirus induced volatility has really brought the importance of portfolio diversification to the forefront of investors’ minds. Now is the perfect time to assess both the make-up of your portfolio and risk exposure within the portfolio.

Like the broader corporate bond market, RMBS is also responding to market uncertainty. Structural support features and government assistance for borrowers will provide short-term support for the asset class.

The primary bond market is showing signs of recovery, mainly in investment grade bond issuance as non-traditional investors move to relative safety of fixed income over equities.

The RBA’s QE announcement yesterday focused on ensuring flow of credit to businesses and households via ADIs. We think the lowering of funding cost for banks is a net positive for the institutions in the current challenging operating environment.

The coronavirus, followed by the nascent oil price war, has been the largest shock that the most expensive equity markets since the Great Depression and lowest yielding bond markets in history has received.

During this time of dislocation, investors are seeking more safety and capital preservation. As we have noted in the past, while higher risk does offer higher returns, it is important to maintain adequate portfolio quality and diversity.

Whilst cash offers security. the current low rates mean many investors can no longer accept this asset as a core portfolio holding. We examine an option with similarly high levels of security but improved yields.

Avanti is a well-established New Zealand finance company with a number of subsidiaries that focuses on four distinct sectors: residential mortgages, motor vehicle finance, consumer finance, and business (“SME“) lending. Avanti has been lending to New Zealanders since 1991.

Founded in 2004, Greenko Group (Greenko) develops and operates clean energy projects across 15 states in India, including solar, wind, hydropower, natural gas, and biomass assets.

Liberty has mandated Deutsche Bank, NAB and Westpac for a potential 4-year AUD $200m floating rate note.

GPT RE Limited operates as a real estate investment trust. The Company owns and manages a portfolio of offices, logistics, business parks, and shopping centres. The company was incorporated in 2003 and is based in Sydney, Australia.

There have been many events already in calendar year 2020 that would ordinarily be considered significant for a single year, with the current coronavirus bringing back memories of SARS in 2003.

We are only a month into the new year and already there have been a number of events that we classify as remarkable in nature, which will have long lasting effects on financial markets.

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.