Asmita Wire Contributor

Asmita Kulkarni

Director - Credit Research, Banks and Financial Institutions


Company updates

CML Group - FY17 solid result

CML posted a strong result with FY17 EBITDA of $13.3m which was ahead of revised guidance as both scale and volume improved. Management are focused on transforming funding by moving to majority bank funded debt in the next 12 to 24 months. CML’s bonds are currently trading higher than the 104% call price at which they are likely to be redeemed at the next call date in May 2018, we believe they offer fair value at current price

Company updates

QBE ratings affirmed

Despite worse than expected weather events and natural disasters, QBE’s ratings were affirmed by S&P and Moody’s. We believe the USD 5.875% 17 June 2046 subordinated Tier 2 bond is trading at fair value

Company updates

IMF Bentham - FY17, a year of consolidation

FY17 represented a year of consolidation as the company worked on its diversification strategy and expansion into new markets. In our opinion, the 7.40% June 2020 secured bonds offer good value at mid price of $103.6 and YTW of 5.81%. Furthermore, we believe that these bonds provide portfolio diversity as litigation funding is relatively uncorrelated to general economic conditions

Company updates

Genworth Australia– 1H17 results weak

Earnings deteriorated due to lower sales and increasing delinquencies. Capital ratios remain strong. We believe Genworth Australia’s regulatory compliant 10NC5 bond with maturity of July 2025 and call date of July 2020 offers fair value at current mid-price of $103.3 and YTW of 4.40%

Company updates

Genworth Financial, Inc.

In this note we provide an update on the proposed acquisition of Genworth Financial, Inc. (‘Genworth’) by China Oceanwide Holding Group (‘Oceanwide’) which was announced in October 2016 and approved by shareholders in March 2017.