Investment Strategy

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.

New Issue Alert – Downer

New DirectBond – Fortescue Metals Group

New Issue Alert – Peabody corporate bonds

New Issue Alert – Pacific National corporate bonds

In this week’s note we will take a look at negative yielding bonds and the implications for Australian bond investors.

New Issue Alert – Australian Unity simple corporate bonds

As expected, Tier 2 issuance from Australian major banks is continuing to gather pace. With Commonwealth Bank of Australia (CBA) the latest to announce a Tier 2 note offering.

While high yield bonds provide a healthy income stream, this higher yield comes with higher risk. Here we consider the risks associated with US high yield bonds.

Liberty Financial (Liberty) has mandated managers for a potential 3-4 year AUD denominated bond in either or both fixed and FRN format.

New issue alert - Westpac launches Tier 2 Subordinated Bond

In this inaugural report on the performance of the Residential Mortgage Backed Securities (RMBS) sector, we review the current characteristics of a large number of RMBS where our clients have exposure.

The Solactive FIIG Australian High Yield and Non-Rated Bond TR Index is a new index that allows investors to assess performance of the AUD high yield (HY) bond market.

New DirectBond - Oasis Petroleum

2019 year to date (YTD) performance of most bond and stock markets has been strong. So it is no surprise to note that US high yield bonds have had one of the best returns since 1987.

As we kick-off the new financial year, it’s timely to look back at market conditions over the first half of 2019 and consider how best to adjust portfolios for the remainder of the year.