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Category: Market Perfomance

BondAdviser Additional Tier 1 Capital Instrument Index Launches…

Please find below details and links to documents regarding the launch of BondAdviser’s Additional Tier 1 (AT1) Capital Instrument Index. This index series is designed to accurately reflect the performance of the ASX-listed AT1 hybrid market.  The main parent index is the BondAdviser Additional Tier 1 Capital Instrument Index.  From this, two sub-indices are derived,…Read More

Bloomberg AusBond Composite Bond Index

June 2017 Figure 1. Comparable Monthly Performance Source: Bloomberg Figure 2. Monthly Issuance Levels Source: Bloomberg Figure 3. Monthly Credit Floating Rating Note Issuance Levels Source: Bloomberg Figure 4. Monthly Buyback Levels Source: Bloomberg Figure 5. Historical Sector Weightings Source: Bloomberg Figure 6. Credit Quality Composition Source: Bloomberg Note: BBB includes BBB+, BBB and BBB-

Bank Issuance Supplies Investors but Corporate Hybrids are Dwindling

With ~$4.7 billion of net issuance of ASX-listed debt and hybrid securities in 2016, investors have not been short of supply but with three large-scale hybrids due for redemption before years end, where will this maturing capital go? Figure 1. 2016 Transactions Date  Ticker Issuance ($m) Replaced ($m) Net Issuance ($m) 30-Mar-16 CBAPE $1,450 PCAPA – $1166…Read More

Hybrids: Have we recovered since February?

Back in February 2016, trading margins of ASX-listed hybrid securities widened significantly. As a result, there were a number of attractive investment opportunities and following a relatively stable reporting season and shift in sentiment, margins began to retrace. While on the surface it appears margins are still tracking well relative to February, a more suitable performance…Read More

Interest Rate Commentary

The Reserve Bank’s monthly board meeting is on Tuesday – the first under new Governor Philip Lowe – and is likely to be a key focus for investors in the coming week. While the Australian dollar remains strong, GDP growth is beating expectations, commodity prices have risen and overall economic data remains resilient despite decreased…Read More

Nufarm Subordinated Step-Up Securities (NFNG) Update

Consistent with other Australian corporates, Nufarm posted solid results for the 2016 financial year from strong cost optimisation rather than increased product demand as underlying EBITDA rose by 17.2% to $372 million despite only a 2% increase in revenue. However, underlying net profit after tax was hit by the group’s emerging market operations (down 7%)…Read More

The Term Deposit Curve is Steepening

Last month, the Reserve Bank of Australia (RBA) cut the official cash rate by 0.25% to 1.50% with many Australian banks deciding not to pass on the full rate cut to mortgage holders and instead partially maintaining (and in some cases improving) some term deposit rates. In response to media criticism the banks cited regulatory…Read More