Week in review
AUD falls after the RBA’s cash rate cut last Tuesday, government bonds at a record low, and strong demand for the Royal Women’s Health fixed rate bond
Company updates
On 4 May 2016, Fortescue Metals Group (FMG) issued a repayment notice for US$650m of a Senior Secured Term Loan due in 2019
Week in review
Headline quarterly CPI posts negative, domestic rates fall and Fortescue to redeem their 2019 senior unsecured bond
Company updates
Fortescue’s announcement that it is calling its remaining 2019 unsecured bonds is a win for both existing 2019 holders as well as investors in the longer dated 2022 lines. We believe the credit has materially derisked through the company’s continued free cash flow generation and debt reduction, despite a weaker commodity price environment
Company updates
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
Company updates
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
Week in review
Moody’s warns Australia on its AAA credit rating, domestic rates rose and Royal Bank of Canada 4.65% 2026 was added to the DirectBonds list. We also had strong interest in two new AUD Rabobank DirectBonds
Opinion
Volatility spells risk but it can also spell opportunity. Global commodity markets are in a state of flux, over reacting both up and down to perceived changes in supply and demand, providing some huge potential gains for investors buying at low points and prepared to take a risk
Company updates
Fortescue has had an amazing 24 hours. After an 18.5% increase in iron ore prices overnight, Fortescue has announced it has signed a non binding agreement with Brazilian miner Vale for investment and product blending opportunities. Bond prices have rallied by around USD5 on the events
Company updates
Fortescue looks poised to continue to pay down debt, Newcrest has announced an update on the operational issue at its Cadia mine and PAYCE and Mirvac announce a joint venture for the East Village development which is very positive for PAYCE bonds