Trade opportunities
Investment grade bonds are very low risk. Here we highlight our sample AUD investment grade portfolio, constructed by Portfolio Strategy Services and Research
Week in review
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
Week in review
RBA minutes expected to show unchanged rate expectations this year, Frontier sell off sees funds reinvested into high yield USD names, including Bristow, Sprint and Dean Foods; small supply available in QMS Media, and new issues from JC Penney and Pioneer Credit made available to FIIG clients. Last chance to reinvest McPherson’s monies with popular switches into PMP, CFAP and Merredin
Week in review
Upbeat US jobs data released with US CPI due Tuesday, Frontier announced tender to purchase USD1.6bn of its shorter dated senior notes, NRW Holdings 2020s demand outstripping supply, PMP sees reinvestment as McPherson’s calls its bonds end March, Emirates NBD prepares for overseas expansion, and new DirectBond from Bristow paying 8.75% fixed coupon
Week in review
RBA expected to leave rates unchanged, Dean Foods and Sprint provide USD high yield exposure, investors switch out of Talen following dividend payout, Qantas curve remains tightest on record, good two way flows between the Sydney Airport ILBs and active trades in FIIG issued bonds, including zipMoney and Cash Converters. McPherson’s will call its bonds in March
Week in review
Fed’s inflation gauge anticipated this week, Sprint returns to the high yield bond market, USD bonds from Aussie resources sector in demand, investors sell off Qantas to switch into the oil sector and investors add QNB’s highly rated notes. We encourage reinvestment of G8 Education’s maturing bond funds while AUD bonds remain in good supply
Week in review
US CPI beat expectations, weak Aussie employment data, active trades in McDermott ahead of the call date, good supply remains in Cimic 2022, RMBS popular with NAB notes oversubscribed, and investors trade out of G8 Education’s maturing bond and reinvest the proceeds. Diversify with two new DirectBonds – Emirates NBD and QNB Finance
Week in review
High yield bond prices rise after global equity volatility, Aussie unemployment data due Thursday, demand for USD names including JC Penny, Rackspace and Barminco; Asciano 2027 supply exhausted and investors switch out of Downer 2018 to Sydney Airport ILBs and Adani 2020 fixed rate
Week in review
Fed’s inflation predictor due Friday, active trades in Sydney Airport bonds and nvestors reinvest AMP sub debt. New DirectBond available from Network Finance Company
Week in review
Adani calls November 2018 bond, pricing to come. Frontier 2025 holders switch to shorten duration and Noble offers attractive yield over Transocean 2023. RMBS continues as a target out of subordinated debt, sell offs in longer dated Aussie IABs, and popular trades in Challenger 2022, Cash Converters 2018 and Merredin 2022 bonds