Commentary

Opinion

The outlook for Australian bond yields

Bond yields are projected to rise in 2018 and 2019, but by how much? Where will they settle? Warren shows historically, it takes a very long while for them to rise 200bps above low points. He then forecasts end 2018, mid 2019 and long term rates

Week in review

From the trading desk

Adani calls November 2018 bond, pricing to come. Frontier 2025 holders switch to shorten duration and Noble offers attractive yield over Transocean 2023. RMBS continues as a target out of subordinated debt, sell offs in longer dated Aussie IABs, and popular trades in Challenger 2022, Cash Converters 2018 and Merredin 2022 bonds

Trade opportunities

A big year for RMBS

Residential Mortgage Backed Securities (RMBS) issuance this year has been huge with plenty in recent weeks taking the calendar year to date total to A$32.13bn. This note discusses the relative appeal of RMBS, auctions by the Commonwealth Office of Financial Management (AOFM), the issuers, the amounts and shows pricing of two recent deals from Liberty Financial and the CBA

Week in review

From the trading desk

Positive US economic data continues, new Adani US denominated bond and Elanor tapped an increase into its 2022 bond. Challenger offers subordinated debt 2022 bond, popular trades in Barminco and Noble and JC Penney beneficiaries of USD flows. Limited supply in new RMBS issuances and Windstream potential bankruptcy

Week in review

From the trading desk

US quiet with Thanksgiving meant holiday, high volume trades in Adani Abbot Point following news of a potential new US dollar bond issuance. Avon 2022 bonds attractive for USD high yield portfolios, Barminco popular on Asian trades. Cash Converters 2018 bond a good place for short term investment and active trading in RMBS

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