28 Mar, 2018

USPP Market – Why Do We Care?

By |2018-03-28T22:58:06+11:00Mar 28, 2018|Case Study, Education|

Tabcorp recently announced that it had successfully priced US$1.4 billion long-term notes to investors in the US Private Placement (USPP) market. The placement comprises four USD and two AUD-denominated tranches, with maturities evenly spaced between 8 – 18 years. The notes will be issued in June 2018. All USD proceeds will be swapped into AUD, resulting in total AUD proceeds [...]

28 Mar, 2018

Coupon Strategy: Reinvestment or Withdrawal?

By |2018-03-28T19:46:08+11:00Mar 28, 2018|Education|

As most equities pay dividends, the majority of fixed-income securities (excluding zero-coupon bonds etc.) pay coupons periodically to investors throughout the instrument’s life. However, fixed-income securities’ interest payments are non-discretionary compared to optional share dividends and failure to fulfil bond obligations (including paying interest) can have severe consequences including default, credit rating downgrades, trading penalties and adverse regulatory actions. This [...]