The model portfolio return over the 2015-16 financial year was +4.24%, strongly outperforming the benchmark return of +1.98%. In terms of individual exposures, the portfolio benefited from positive contributors to performance from the Suncorp Convertible Preference Shares II (ASX Code: SUNPC), ANZ Convertible Preference Shares 3 (ASX Code: ANZPC) and the AMP Subordinated Notes 2 (ASX Code: AMPHA), contributing [...]
The concept of liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without having a material impact on price. Similarly, bond market liquidity refers to the extent to which the bond market allows assets to be bought and sold at stable prices. Cash or cash equivalent securities are the most [...]
Earlier in the year Virgin Australia tapped strategic shareholders for a $425 million loan facility prompting a review of its capital structure to enhance cashflow and profitability. The last time Virgin went to these shareholders was in late 2013 ($90 million) when the aviation industry was facing poor consumer sentiment and high oil prices. Qantas was in an even worse position [...]
Given the persistently low interest rate environment, the search for yield is becoming an increasingly difficult task. Central banks’ ‘lower of longer’ stance of interest rates has led to exacerbated returns and the timing of a global economic turnaround is uncertain to say the least. The world is in a state of transition. High-growth emerging markets and cutting edge technology [...]
In Australia, financial institutions continually use debt capital markets as source of funding. But what about other companies? The majority of ASX200 non-financial groups tend to issue overseas in larger markets such as the UK, the Eurozone, Singapore and the US. From our findings, we discovered on average 44% of borrowings for ASX200 companies that have marketable debt in Australia [...]
In light of the new Peet Bond issue announced last week, we thought it would be an opportunity to discuss what are ‘Simple Corporate Bonds’ (SCB). In 2014 in Australian Parliament passed the Corporations Amendment (Simple Corporate Bonds and Other Measures) Act. This amendment aimed to make it easier for both companies seeking finance and retail investors to access the [...]
On the 3rd of May 2016 Peet Limited (ASX Code: PPC) announced a new issue, Peet Notes. The size of the offer is indicated at $75 million but will change based on demand. The purpose of this transaction is to help refinance the existing Peet 9.5% Convertible Notes (ASX Code: PPCG) while further diversifying and increasing the average maturity of Peet’s debt [...]
As most of us know, the fixed income market is generally less liquid and transparent than equity markets. However, fixed income exchange traded funds (ETFs) can help bridge the gap between these asset classes. These ETFs cover a broad range of fixed income type securities. Some ETFs are issuer specific (i.e. corporate, government or semi-government Securities), coupon specific (i.e. fixed [...]
Over the past couple of years there has been increased focus on high yield securities as government bonds have fallen to all time lows. A portfolio of high yielding securities therefore requires an understanding of the different types of securities available. Investors have definitely moved up the risk spectrum into high yield bonds and/or hybrids. While we are not suggesting [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
An employee-owned financial services provider focused on the Debt Capital Markets.
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ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
