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New securities

This week we added eligible securities from the domestic airports to our list.

Brisbane, Perth, Melbourne and Sydney airports all have debt securities, which are accessible to retail and sophisticated investors.

Broadly speaking, these are very stable businesses that are unlikely to face major earnings disruptions except for natural disaster events and/or terrorist events.

The biggest risk is that they run large capital expenditure programs to improve infrastructure, which is generally debt funded. Hence, they have reasonably high leverage.
This is not a major concern to us as they are generally well managed over a very long period, almost annuity like.

These securities are offered by a number of brokers and research reports can be accessed at http://www.bondadviser.com.au/research_items