Improving market sentiment leads to higher Fortescue bond prices, while Peabody files for Chapter 11 bankruptcy protection in the US. The Royal Bank of Canada 27 January 2026 subordinated bond has been added to the DirectBond list
Fortescue
Market confidence in Fortescue is improving, driven by higher iron ore prices and continued progress reducing costs. The company is weighing up options for its USD1.5 billion cash pile that ranges from refinancing to fresh bond buybacks.
Fortescue recently published its March quarterly production report which was positively received by the market.
More information is available here.
Peabody
Peabody Energy has filed for Chapter 11 bankruptcy protection in the US. In its statement, the company notes that its Australian operations are continuing to operate as usual. As a result, the take or pay contracts with Peabody mines continue to be serviced. Ultimately, a restructure of Peabody’s debt or sale of its assets to a more creditworthy owner would be positive for each of the Australian coal terminals.
More information is available here.
RBC
FIIG has DirectBonded the Royal Bank of Canada 27 January 2026 subordinated bond. The bond presents an opportunity to diversify away from USD resource exposure into a stable, investment grade financial institution. The recent positive swings in oil prices and iron ore have seen resource bond prices shift higher. Existing USD investors could take some profit and risk off the table, and switch some of their investment into the bank and still achieve returns of 4% pa.
Royal Bank of Canada (RBC) is Canada’s largest bank, and one of the largest financial institutions in the world, based on a market capitalisation of CAD111.23bn (AUD113.5bn, 11 April 2016). RBC can be seen as similar to the CBA in terms of size and presence in Canada, however it has better diversification both geographically and by product.
More information is available here.