Kinross Gold Corporation USD 5.125% 1 September 2021 Senior Unsecured Bond
Volatility is never “expected” by definition, but the chances of more volatility are much greater in the next few months as we head into an extraordinary US election and the US Fed attempting to raise rates again. Gold producers’ corporate bonds make a strong income producing hedge in such times
Gold has been a hedge against risk for thousands of years. And while it is effective more often than not, as far as income production goes, it offers nothing. But for Australian investors, there is a gold investment that can also provide income; the corporate bonds of gold producers
Company reporting galore as Ausdrill exceeds cashflow expectations, CML and Dicker Data both post solid results, Kinross 2041 bond added to our DirectBond list, PMP reports it is in a near debt free position, Sunland bonds offering good value on the back of its results and Qantas FY16 profits up 57% from the previous year
Week in review
Global central bankers insist on running in circles, lack of volatility continues in domestic credit and Kinross added to our DirectBond list
While the results are solid overall, they also point to the fact that an increasing proportion of earnings are being generated from Kinross’ Russian gold mines, which has been a key factor in the downgrade of Kinross’ credit rating to Ba1 from Moody’s. The Russian mines have performed extremely well in the recent quarter following the devaluation of the Russian ruble.
Kinross Gold Corporation USD 5.95% 15 March 2024 Senior Unsecured Bond