The first quarter of 2016 was a tale of two halves for the ASX listed hybrid universe. January started poorly as the Australian share market followed their global peers as a risk-off tone permeated the financial markets. ASX listed hybrids followed suit with corporate issued hybrids faring much worse than their bank issued peers. The risk-off tone continued into [...]
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 [...]
Trading margins for the majority of ASX listed notes (hybrids) of the four major Australian banks have been rising for most of the past year and a half, the low point being the 18th of August 2014 PERLS VII (ASX code: CBAPD) transaction issued at 280 basis points over swap. The peak in trading margins was reached on the 15th [...]
The Short Term In March Australian sovereign debt delivered a 0.9% loss and was one of the worst performers among global debt markets. The 10-year government bond yield rose from 2.39% to a high of 2.70% and currently sits at 2.50%. As a result, Australia offers one of the highest 10-year yields among sovereigns that have a top grade credit [...]
We have updated our recommendation for Multiplex SITES (ASX: MXUPA). For subscribers to view the full report click here. To sign up for a free trial and get access to the report click here.
People often forget the underlying differences between equity and credit. While stock selection is all about picking winners in the equity market, the goal of credit selection is to avoid losers. First and foremost credit is about getting your money back and being adequately compensated for the risk of not getting your money back. In many ways this is the [...]
The first chart shows the move in trading margins over the past week: Whilst the rally in securities with an expected call date of less than a year has stalled a little, investors have continued to buy securities between two and three years to the expected call date; and Generally investors continued to ignore longer dated hybrids (i.e. hybrids [...]
CML today announced the proposed issue of new 6 year fixed rate notes paying 8.00% p.a. The proceeds will be used will assist in the acquisition of CashFlow Advantage and general corporate purposes. The group is seeking a minimum of $20 million from the deal and will not accept oversubscriptions of $25 million. The notes will be callable in March [...]
Payce have announced a proposed resolution to redeem the remaining $12.03 million Payce 9.50% 2018 notes outstanding. The outcome will be dependent on a vote by noteholders. If passed the notes will be redeemed by 108.50% of the outstanding principle of each note and all accrued interest to the 31 March 2016. If successful, the notes will be redeemed on the next [...]
As it has been almost 3 weeks since the CBA launched their PERLS VIII hybrid issue, now is an opportune time to have a look at how the existing Tier 1 hybrids have fared. The green arrows on Chart 1 highlights hybrids that have rallied over the last three weeks and their trading margins narrowed since the PERLS VIII issue announcement [...]
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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.
