USD denominated bonds issued by Australian companies have been caught up in the recent weakness in USD bond prices. This has been further exacerbated by trade tensions between the US and China, creating an opportunity for investors to enter or add to holdings
Residential Mortgage Backed Securities are a popular choice for wholesale investors as they can choose the risk and return they seek and the securities offer a premium over similarly rated corporate bonds. Here we explore some basic features of these securities and outline what makes them different to vanilla corporate bonds
Week in review
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
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
Last week we had an excellent question from a client
Moving to higher quality investment grade securities is an ongoing theme for portfolios. RMBS looks attractive compared to similarly higher rated financial or corporate bonds
We have provided a report for Genworth Financial Mortgage Insurance (Genworth AU) full year 2017 results.
The IMF Bentham 7.40% notes due June 2020 is now available to retail investors. We initiate our coverage on the notes with a Market Perform recommendation. Our credit outlook is Stable.
We have provided an update for StockCo's 1H18 earnings
We have provided a report for Axsesstoday 1H18 results