Week in review

Week in review

From the trading desk

Fed minutes due Thursday with a hike anticipated, HCA the standout USD trade, Kindred calls its 2023 bond, Virgin’s AUD bond flies out the door, and Cash Converters popularity continues after equity raising announcement. Sell off in AUD investment grade with investors switching to floating rate notes

Week in review

From the trading desk

New DirectBond from HCA, QBE upgrade, switches from several AUD high yield names into Virgin’s new AUD bond. Cash Converters equity raising to repay September 2018 bond and USD high yield available in Hertz 2022 and Sprint 2025 bonds

Week in review

From the trading desk

Positive US data continues despite some missed expectations, active trades in Hertz 2022s after sustained price weakness, Sprint 2025s see further demand, and investors redirect Plenary redemption funds to the Praeco 2020s. Sell off in Qantas 2020s while QBE USD 2026s an attractive investment grade option. Both Merredin and JCP USD yielding above 7%

Week in review

From the trading desk

Next Fed rate rise priced in for the June meeting, QBE subordinated notes the USD standout, and Virgin’s USD high yield debt look attractive after new AUD issuance. Investors switch out of high yield and into BoQ, Challenger and IAG. The Praeco bond offers standout relative value, and the new Aroundtown 2025 AUD bond a popular choice

Week in review

From the trading desk

Disappointing US average earnings, active trading in Barminco continues, price rallies in the Sprint 2023 and 2025 bonds following merger talks, Dean Foods downgraded. Investment grade BoQ sub debt available, switches into the IAG Tier 2 note from AUD FRNs. CML and Capitol Health due to repay investors. Plenary’s new subordinated notes still open

Week in review

From the trading desk

US data beats expectations, Aussie cash rate expected to hold at RBA meeting, Bristow proves popular as yields fall, Barminco at an attractive yield while Ensco sells after weaker 1Q18 results. Switches from high yield AUD names into IAG 2023 FRN, and active trades in Cash Converters 2018 as a short dated option. Supply in RMBS lines were in demand last week

Week in review

From the trading desk

Trump blames OPEC for ‘artificially high’ oil prices, Bristow the standout USD high yield bond, Rackspace continues to be a popular trade with sub investment grade Dean Foods and JC Penney offering high yields, FRNs on demand to minimise interest rate risk exposure, investor interest in Adani’s shortening maturity and FIIG originated Lucas TCS a great sector diversifier. If you own Capitol Health bonds, remember, they are being called on 10 May

Week in review

From the trading desk

Market still expects rate hikes this year following hawkish FOMC minutes, investors see recent Rackspace price weakness a buy opportunity, Cash Converters great short term investment, Asciano 2027 FRNs available, and Liberty Finance a popular switch target after 2021 bond issuance. The latest new DirectBonds include Teva and Calpine, offering exposure to the pharmaceutical and energy sectors

Week in review

From the trading desk

US jobs figures reverse previously upbeat employment growth, Rackspace a standout USD high yield trade amidst IPO speculation, FIIG originated IMF Bentham now available to retail investors with strong supply, and CML calls its fixed rate notes in May. Investors switch into new DirectBonded IAG 2044 bond from other subordinated debt and two new DirectBonds from Teva Pharmaceuticals maturing in 2023 and 2026

Week in review

From the trading desk

Subdued market reaction to Fed rate hikes while unchanged Aussie rate outlook continues, Frontier buys back over USD1.6bn in tender results, Rackspace yielding above 8%, investors exit Newcrest following outlook downgrade, and switches to QMS 2022 bond before McPherson’s call date. High demand for foreign DBS 2023 bond, and Emirates and Qatar 2028 bonds. Active trades in new DirectBonds including Bristow, JC Penney and Sprint

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