High yield foreign currency bonds are more volatile than higher rated local currency bonds. This journey took another turn recently as the AUD dropped to USD 71 cents. Prices on some of the higher risk names also improved last week. While not an economist or foreign currency expert, Head of Private Client Solutions, Jon Sheridan shares his thoughts on the AUD.
Week in review
Positive signs from NAFTA and US/China trade talks, AUD/USD cross currency swaps at three year high, primary issuance of AT&T 2028 popular with clients seeking extended duration, good supply of USD Nufarm 2026, investors looking ahead holding Downer November 2018s November maturity reinvest in bonds such as DBCT
Wholesale investors seeking both high yield and high income from bonds should consider the MIPS Income Plus Individually Managed Account (IMA) Investment program.
See the top rates for bonds and term deposits available this week
The AUD dropped harder and faster than other Asian currencies on Friday reinforcing its position as a liquid and flexible proxy for the Asia region. Right now the Australian economy is performing at its best in years which should be good news for the AUD, but the currency is sending a foreboding signal that winter is coming
Week in review
Bank lending tightens and wages rise putting pressure on household finances, Australian GDP growth on the upside, supply for Suncorp 2023c remains accessible, AAA rated Ale 2023 ILB bond still in supply, PJS 2030 IAB popular as longer dated inflation hedge
We discuss bank hybrids, in particular the conversion of TELYS4 from hybrids to shares or part redeem for cash and what it means for the wider market.
New to the Sydney office, Victor has already made his mark with his contagious charisma. But he doesn’t view his efforts as work; getting to socialise with his clients every day is what he loves. Having produced a digital music album for Real Madrid in 2011, Victor now pours his infectious energy outside of work into the corporate countdown ‘Market Rock’, which he instigated, raising significant funds for the Children’s Cancer Ward at Westmead.
Cut your reading time and listen to a podcast instead. This week's BondCast looks at the rules put in place to protect bond holders from events such as company acquisitions
FIIG is Australia’s leading fixed income specialist. For 20 years we’ve been providing investors with direct access to bond markets and a range of term deposits and other cash solutions.