At the end of May 2017, sandalwood farming company Quintis Limited (ASX: QIN) was downgraded by Standard & Poor’s into the rarely seen ‘C’ section of the credit rating spectrum indicating immediate danger of credit default. Quintis (which formerly traded as Tree Management Services) is the world’s biggest owner and manager of Indian sandalwood which is a timber used in [...]
Over the past few years, Noble Group (SGD: NOBL), once Asia’s largest commodity trader, has experienced a significant decline in profitability following a downturn in the commodities market coinciding with accusations of overstating its accounts. After reporting an unexpected quarterly loss, Noble’s woes deepened when it announced that it may not be profitable until 2019, sparking concerns it would not be [...]
After a brief hiatus, the media-dubbed ‘Reflation Trade’ has re-emerged as a key talking point in financial markets. Donald Trump’s victory in the US Election and his focus on pro-growth policies gave global markets the confidence to think the inflation tide had finally turned. However following a string of allegations surrounding the President, this trajectory has somewhat stuttered. In light [...]
Over the past decade, Netflix has risen to be a household name through its leading position in the of ~US$30 billion global video streaming market. The company is a constituent of the S&P500 index (the largest 500 stocks in the US) and its market capitalisation has grown significantly since 2012 as its international footprint has expanded to over 190 countries. [...]
When investing in the ASX-Listed Debt & Hybrid market, an important consideration is liquidity. Given the market’s size of ~$60 billion, liquidity can be limited and if a major announcement occurs it may be difficult to get in or out of positions. For this reason, investors may have to accept a lower price to sell or pay a higher price [...]
Amidst a global downturn in the resources sector, drilling company Boart Longyear (ASX: BLY) has suffered a challenging trading environment resulting in weak liquidity and profitability. In a bid to stay afloat and meet existing debt obligations, the company announced its intention to restructure its debt and capital last year. Earlier this month, BLY indicated that the recapitalisation plan had [...]
In recent years, there has been a clear global focus of Environmental, Social and Governance (ESG) standards. As a result, companies have become more ethically conscious and developed new initiatives to demonstrate this behaviour to investors. One such initiative has been the rapid rise of the Green Bond market which is estimated to be ~US$150 billion. These instruments are like [...]
Amidst decade-low uranium prices and over-supply of yellowcake (impure uranium oxide obtained during processing of uranium ore) Paladin Energy (ASX: PDN) announced an ambitious capital restructure plan earlier this year. The capital restructure proposed the exchange of its existing 2017 convertible bonds (US$212 million) and 2020 convertible bonds (US$150 million) into US$115 million of new secured bonds due 2022, US$102 million [...]
In early 2015, legal firm Slater and Gordon (ASX: SGH) acquired the professional services division of the controversial UK group Quindell Plc for $1.2 billion. The debt-funded acquisition, which management hoped to be transformational, has since resulted in large losses and been completely written down, weighing significantly on the firm’s earnings and balance sheet. The weak performance of the group continued [...]
In recent years, non-financial corporate security issuance into the ASX-Listed Debt & Hybrid market has dwindled. There has been a number of factors but a standout contributor has been the change to credit rating methodology known as ‘equity-credit’ where hybrid securities are classified as equity (instead of debt) from a credit rating perspective. This maintains the underlying issuer’s credit metrics when [...]
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An employee-owned financial services provider focused on the Debt Capital Markets.
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