WEEKLY REVIEW
13 Apr - 17 Apr 2015
STRONGER JOBS SEES YIELDS HIGHER
CONTENTS
KEY EVENTS
 WA placed on credit watch negative
 The Fed’s view on rates
 Inflation linked bonds go negative
 RabDirect loses parent
 INSIGHT: Company capital structure
 Two major banks cut cash accounts
Stronger employment numbers sees yields higher
Australia's unemployment rate for March 2015 was 6.1%(seas.adj.), compared
with a downwardly revised 6.2% for February 2015. Stronger full time job
growth in the past two months saw yields rise as the market revised its
expectations of a May rate cut by the RBA. Read more.
Inflation linked ACGB sees negative real yields in Australia
Inflation linked bonds pay investors a margin above the inflation rate. This suits
those seeking to maintain returns above inflation. This week, however, saw a
tender for ILBs sold at a negative real yield - a return below inflation. What is
that saying about the market’s expectation on inflation? Read more.
Parent guarantee removed from RaboDirect
RaboDirect has told customers that new deposits with the bank no longer have
the guarantee of its parent, Rabobank Nederland, a guarantee it has had since
1994. This only applies to new deposits and the interest earned on new
deposits. Read more.
Hockey decides on bank deposit levy
Joe Hockey, the federal treasurer, confirmed that a bank deposit levy will be
included in the budget next month. It will start in 2016 and will raise $500m.
Business confidence and conditions up
Business confidence rose in March from a reading of 0 to +3. Business
conditions were up from +2 to +6 according to NAB's monthly survey, above its
long run average of +4. That helped lift confidence by three points to +3, so
reversing all of February's downturn.
Chinese economic growth wanes
China’s Q1 GDP, year-on-year showed growth of 7.0% the slowest pace since
the 2009 global recession, matching expectations and down from 7.3%.
Industrial production for March, year-on-year was up 5.6%, missing
expectations of 7.0% growth. Retail sales for March, year-on-year were up
10.2%, missing expectations of a 10.9% rise. The IMF sees Chinese expansion
slowing to 6.8% this year and 6.3% in 2016. These numbers are scrutinised
closely with a view to what may happen with iron ore and energy prices and
their effect on Australia’s economy.
INSIGHT: Understanding the company capital structure
With record low yields, many investors are taking on more risk as they seek
higher returns. Our exclusive insight this week looks at why fixed interest
should remain a key part of an investor’s portfolio and why understanding the
capital structure of a company remains the cornerstone for understanding
equity and debt risks. Read it here.
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COMMENTARY
CASH ACCOUNTS
TERM DEPOSITS
BANK BILLS
GOVT BONDS
SEMI GOVT BONDS
CORPORATE BONDS
HYBRIDS
EXCHANGE TRADED
FUNDS
MANAGED FUNDS
NEW ISSUES
NEWS
INSIGHTS
PRICING TABLES
TERM DEPOSITS
GOVT BONDS
SEMI GOVT BONDS
CORPORATE BONDS
FLOATING RATE NOTES
HYBRIDS
AUST BOND FUNDS
GLOBAL BOND FUNDS
EXCHANGE TRADED
FUNDS
CASH FUNDS
SUBSCRIBE HERE TO YIELD REPORT
SNAPSHOT OF KEY NUMBERS
Week
Close
Week
Chg
Week
High
Week
Low
RBA Cash Rate % 2.25
90d Bank Bill %
2.26
Aust 3y Bond %*
1.76
Aust 10y Bond %* 2.35
US 2y Bond %
0.50
US 10y Bond %
1.87
US 30y Bond %
2.52
Aust iTRAXX
87.2
$A1 / US cents
77.84
-0.01
0.03
-0.02
-0.05
-0.08
-0.06
1.6
1.05
2.27
1.76
2.40
0.53
1.93
2.57
87.2
78.43
2.25
1.64
2.27
0.49
1.87
2.52
85.2
75.53
* Implied yields from June 2015 futures
Employment Growth (Seasonally Adjusted)
Source: ANZ, ABS
yieldreport.com.au
www.yieldreport.com.au
WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
CASH
Cash Accounts
Product
The growth in employment saw a large number of market players
review their calls for a May rate cut. It is now only priced as a 50%
chance down from being priced as a 100% certainty two weeks
ago. The low in cash rates is still being priced for March/April 2016
at 1.76% or another two 25bp rate cuts.
In our cash accounts last week, ANZ Progress Saver dropped from
3.16% to 2.96% and the CBA Goal Saver Account dropped from
3.20% to 3.00%.
1.795
1.70
1.60
1.50
SOURCE: IRESS 30 day interbank cash futures.
1.78
1.77
1.765
1.76
1.76
1.765
1.77
1.765
1.82
1.80
1.795
1.865
1.90
17-Apr
1.835
2.00
10-Apr
1.965
2.10
2.125
2.20
2.035
2.30
CASH RATE EXPECTATIONS (%)
2.245
2.40
Int p.a.
AMP Saver Account
AMP Notice Account
ANZ V2 Plus
ANZ Progress Saver
Arab Bank Online Savings
Bankwest Smarter Esaver
Bankwest Solid Gold Saver
BoQ Cash Man Account
BoQ Bonus Interest Savings
CBA NetBank Saver
CBA Goal Saver Ac
Heritage Online Saver
ING Savings Accelerator
Macquarie CMA
Mebank Online Savings
NAB Isaver
NAB Reward Saver
Rams Saver Account
Suncorp eOptions
Usaver
Usaver Ultra
Westpac eSaver
Westpac Reward Saver
2.85%
2.95%
0.75%
2.96%
2.55%
3.30%
2.50%
2.35%
2.95%
2.25%
3.20%
2.95%
3.00%
2.15%
2.50%
2.25%
3.05%
3.80%
2.20%
2.56%
3.62%
2.25%
2.95%
Special Cond
31 days’ notice
1 dep no w/draw mth
Min balance $5,000
Up to $500k.
Zero w/draw pm up to $500k
$10k+
Limit 1 w/draw pm
$250k+
$200pm dep, $100k lim, 1wd pm
$750,000+
$150k+
1 dep no w/draw mth
$200 pm no withdrawal
$200 pm up to $200k
Up to $200k +$2k pm dep
dep $50 and no withdrawals
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
15 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16
TERM DEPOSITS
Another week of term deposit cuts last week, with CBA
making 10bps cuts to a number of its rates. Cuts also from
HSBC, QT Mutual Bank, RaboDirect and Suncorp Bank. BOQ
Specialist raised some rates. RaboDirect no longer has its
parent bank guarantee for new deposits - see page 11 for full
details.
Source: YieldReport
BEST TERM DEPOSIT RATES (%)
4.20
4.10
4.05
4.10
4.00
3.90
3.90
3.80
3.80
3.70
3.65
3.70
Our term deposit rate table on page 14 has a full list of over
475 TD rates.
3.55
3.60
3.50
3.40 3.40
3.40
©YieldReport
3.30
1m
3m
6m
9m
1y
2y
3y
4y
5y
2
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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BANK BILLS / SWAP RATES
SWAP TO BOND SPREADS (%)
The 5y swap to bond spread has moved from 51bps to 42bps in two
weeks to reverse its move for the calendar year. 3y and 10y swap to
bond spreads had previously narrowed and the 5y was lagging as new
debt issues hit the market. 90day bank bills were flat last week closing
at 2.26%.
1.30
1.20
1.10
1.00
0.90
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
3y
5y
10y
AFMA BBSW / Swap Rates
MATURITY
CLOSE
ΔWK
ΔMTH
30d
90d
180d
1 Year
3 Year
5 Year
10 Year
15 Year
2.25
2.26
2.29
2.06
2.11
2.38
2.74
2.96
0.00
0.00
0.02
0.02
0.03
0.02
-0.01
-0.01
-0.04
-0.06
-0.04
-0.04
-0.01
-0.01
-0.06
-0.07
©YieldReport
Apr 12 Sep 12 Feb 13 Jul 13
GOVERNMENT BONDS
Dec 13 May 14 Oct 14 Mar 15
AUS GOVT 3Y & 10Y BONDS
The AOFM sold inflation-linked notes at a negative real yield for the
first time: $200m of 1% indexed bonds due in November 2018 at an
average yield of inflation minus 0.076%. The AOFM received $925m of
bids for the bonds, or 4.625 times oversubscribed.
$17bn of bonds matured last week putting a large amount of cash back
into the market. Last week 3y ACGB rose by 3bps to 1.76% while 10y
fell by 2bps to 2.35%. The employment numbers caused the biggest
move on the week with 3y rising 12bps immediately after and 10y
rising 9bps over the same time. US 10y bonds fell 8bps to 1.87%.
3y
©YieldReport
Sep 12
GOVERNMENT YIELD CURVE
Feb 13
Jul 13
Dec 13 May 14
10Y
4.50
4.25
4.00
3.75
3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50
Oct 14 Mar 15
AUST GOVT YIELD CURVE (%)
The yield curve flattened last week with the spread between the 3y
and 10y bonds ending the week at 59bps, tighter than the 63bps at
the end of the week before. 3y bonds rose 3bps to 1.76% and 10y
fell 2bps to 2.35%.
17 Apr 15
2.95
10 Apr 15
2.70
2 Months Ago
2.45
2.20
1.95
©YieldReport
1.70
Years 0.5
1.8
3
4.5
6
8
10
12
18
3
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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SEMI GOVERNMENT BONDS
WATCs AA+ has been placed on Credit Watch Negative by S&P due to
falling revenues from iron ore prices. Spreads blew wider even though
the move was largely expected. SAFA’s new $500m syndicated line of
2.75% Apr 2015 bonds priced at 53bps over ACGBs or around 2.81%.
The yields on our 2020 benchmark semis all rose slightly last week, in
line with ACGB and with spreads widening marginally. NSW TCorp
announced that NAB has tendered its resignation from TCorp's Capital
Indexed Bond Dealer Panel effective 30 March 2015.
ACGB May 21 SPREAD TO SEMIS (%)
0.70
0.65
0.60
0.55
0.50
0.45
0.40
ACGB 4.50% Apr 2020
Spread to ACGB
NSWTC 6.00% May 2020
QTC 6.25% Feb 2020
TCV 6.00% Jun 2020
0.35
17 Apr Last wk Last mth
1.92
1.91
1.95
0.30
0.25
2.23
2.32
2.24
2.20
2.30
2.21
0.20
2.29
2.40
2.30
©YieldReport
Jan 15
Feb 15
CORPORATE BONDS
SAFA May 21
QTC Jun 21
QTC Jun 21
WATC Jul 21
Mar 15
0.15
0.10
Apr 15
CORPORATE BONDS vs 3Y ACGB (%)
1.00
Last week Groupe BPCE sold $350m of 5y FRNs at BBSW + 130bps and
$450m of 5y at 3.5% coupon while SCA Property Group, the real estate
spin-off from Woolworth issued $175m of 6y bonds at Swap + 145bps. In
the Kangaroo market Rentenbank, Municipality Finance, Kommuninvest,
African Development Bank, Kommunalbanken and Bank Nederlandse
Gemeenten all had new issues. Overseas, CBA issued in the Uridashi
market for one US$28m issue and one $37m issue of 5y bonds.
Last week NAB commented, “Looking ahead, the domestic pipeline is
expected to gain momentum as redemptions keep investors cashed-up
and in need of supply. This, when coupled with constructive primary
conditions, will continue to deliver attractive funding options for
corporates who are looking access capital markets.”
ANZ May 16
WPC May 16
WES Nov 16
NAB Feb 17
TEL Nov 17
CBA Jan 18
0.90
0.80
0.70
0.60
0.50
0.40
©YieldReport
0.30
Jul 14
Sep 14
Nov 14
Jan 15
Mar 15
iTraxx rose 1.6bps over the week to 87.2.
iTRAXX AUST SERIES 23
Yields on our corporate benchmarks all rose a little last week in line
with ACGBs and semis, with spreads widening.
110
105
100
Bond
ACGB 4.50% Apr 20
CBA 7.25% Feb 20
Westpac 7.25% Feb 20
Wesfarmers 4.75% Mar 20
Melb Airport 5.00% Jun 20
Telstra 7.75% Jul 20
17 Apr
1.92
2.96
2.99
3.09
5.09
2.90
Last wk
1.91
2.96
2.95
3.10
5.04
2.89
Last mth
1.95
3.02
3.04
3.14
5.44
2.94
95
90
85
80
©YieldReport
Mar 14
Jun 14
75
Sep 14
Dec 14
Mar 15
4
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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HYBRIDS
Hybrid news and updates
CBA launched a 12y no call 7y EUR Tier 2 issue in the Euromarket, raising €1.25bn, priced at Swap + 175bps, swapped back
into AUD at Swap + 268bps, at the expensive end of the spectrum.
Meanwhile last week Baillieu Holst observed, “With three of the big four banks reporting in the first week of May we should
expect to see more news on hybrid issues during the period.”
Crown Resort’s Subordinated Notes II started deferred settlement trading on the ASX last week.
Basel III hybrids and bank sub notes have rallied recently with both
Suncorp ASX securities going against the trend. SUNPE has widened
to almost issue highs, near levels seen last October during the
issuance related sell-off. Meanwhile SUNPC is trending sideways not
far from the bottom of its trading range. SUNPD, a sub note, has also
widened, up in margin some 0.30% in the past two months, despite
the major bank sub notes contracting 0.30% in the past month with
credit markets strong.
Source: Evans & Partners
This chart shows spreads in Macquarie hybrids have been tracking
sideways despite the strength in Macquarie share price and even
with Macquarie CDS spread getting tighter in the past few weeks,
from a high of 92 in late March in to around 80.
With a steady to firm credit market in the background and a strong
equity market, the non-bank sub notes market is mixed, some
margins falling, others rising. The chart shows the higher margin
credits to be widening (circled), whereas the credits with usually
lower margins are rallying. Of those moving wider, CWNHA can be
excused with the new issue settling this week probably weighing on
the old one. ORGHA moving wider despite the share price being up
12.11% this month. Similarly GMPPA steadily widening with the
share price near highs and up 14% YTD.
Source: Evans & Partners
Source: Evans & Partners
5
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13 Apr - 17 Apr 2015
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MANAGED FUNDS
Managed funds news
Standard Life Investments’ Absolute Return Global Bond Strategies Australian Trust has been added to the Macquarie Wrap
platform. The trust is the second multi-asset fund from Standard Life Investments made available to wholesale investors after the
Global Absolute Returns Strategies Australian Trust. The trust will appeal to investors who are seeking a defensive alternatives
strategy with low levels of risk.
Best performing Australian cash managed fund for March 2015
The best performing cash managed fund once again was the IOOF Cash Management Trust with a return for the month of 0.21%,
bringing its 12 month performance to 2.80%, which also means that the fund is the best performer over the period by some margin.
The fund aims provide investors with a stable investment and regular income by investing in a range of cash deposits and short-term
money market securities. The fund aims to provide competitive returns for investors with a total investment return before fees that
exceeds or is at least equal to the Bloomberg AusBond Bill Index. The minimum investment in the fund is $100,000 and the fund
carries management costs of 0.30% pa. Launched in September 2003, the fund now has $1.3bn in asset under management.
Best performing Australian enhanced cash managed fund for March 2015
In the enhanced cash category for March, the best performer was the BT Fixed Interest Wholesale fund with a return of 1.24%,
bringing its 12 month performance to 13.36%. This means that the fund is also the best performer in the category over that period
too. The fund is an actively managed portfolio of primarily Australian fixed interest securities. The fund aims to provide a return
before fees that exceeds the Bloomberg AusBond Composite 0+ Yr Index over the medium term. The return is expected to be
comprised primarily of income. This fund is designed for investors who want income, diversification across a broad range of cash and
fixed interest securities and are prepared to accept some variability of returns. The Fund aims to take advantage of investment
opportunities primarily within the Australian fixed interest market by investing in a combination of commonwealth government,
semi-government and corporate debt and short-term money market securities. The fund may also invest tactically in international
fixed interest markets.
BT Fixed Interest Wholesale fund
ASSET ALLOCATION (31 MAR 2015)
Cash
14.57%
Fixed Interest
85.43%
ETFs
Trading
It was an unusually quiet week for ETFs with very little by way of inflows or outflows.
More ETF growth on the cards
The latest BetaShares/Investment Trends ETF Report just published suggests that the sector will have 184,000 investors by November
2015 from 146,000 investors at present. The data also shows that a record number of investors plan to use ETFs for the first time in the
next 12 months and that 40% of advisers now recommend ETFs to clients. Over 80 per cent of current ETF investors hope to reinvest in
ETFs over the next 12 months. Assets under management in the segment are tipped to reach $23bn by the end of 2015.
6
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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NEW ISSUES
Treasury Bond/Note Tenders and Results
Tender No
764
765
Tnote
766
Index bond
767
Tnote
Date
1-Apr-15
8-Apr-15
9-Apr-15
10-Apr-15
14-Apr-15
15-Apr-15
16-Apr-15
Amt to Public ($m)
700
500
500
2,000
200
700
500
Bond Details
2.75% 21 April 2024
3.75% 21 April 2037
7-Aug-15
1.75% 21 November 2020
1.00% 21 November 2018
4.75% 21 April 2027
7-Aug-15
Weighted Avg Yield (%)
2.2677
2.8421
1.9947
2.0007
-0.0763
2.3834
1.9986
Coverage Ratio (x)
3.014
2.69
3.236
3.145
4.625
3.929
3.680
768
17-Apr-15
700
2.75% 21 October 2019
1.8806
5.779
Semi Government Bonds
Issuer
SAFA
Size ($m)
$500m
New / Existing
New
Bond Details
Apr-25
Rate
ACGB + 53bps
Corporate Bond Issues
Issuer
Domestic issuers
SCA Property
Fonterra
DBNGP Finance
Groupe BPCE
Groupe BPCE
CBA
CBA
Kangaroos
Kommuninvest
Rentenbank
Municipality Finance
African Development Bank
Kommunalbanken
Bank Nederlandse Gemeenten
Tranche
Status
Size
Tenor
Rate
Fixed
Issued
Announced
Announced
Issued
Issued
Issued
Issued
$175m
6y
6.5y
Swap + 145bps
+ 75bps
$350m
$450m
US$28m
$37m
5y
5y
5y
5y
BBSW + 130bps
3.5% coupon
Issued
Issued
Issued
Issued
Issued
Issued
$100m
$200m
$75m
$25m
$50m
$50m
10y
10y
9y
10y
10y
10y
ACGB + 70bps
ACGB + 55bps
ACGB + 58.25bp
FRN
Fixed
Uridashi
Uridashi
RATING ACTION
Issuer
Australia
SCA Property Retail Trust
Brisbane Airport Corporation
Fortescue Metals Group
Description
Sovereign rating
MTN programme
MTN programme
Corporate family rating
Action
Affirmed
Assigned
Assigned
Downgrade
Rating
Aaa
(P)Baa1
(P)Baa2
Ba2
Agency
Moody's
Moody's
Moody's
Moody's
ECONOMIC CALENDAR
DATE
EVENT
21 Apr
28 Apr
29 Apr
30 Apr
RBA board minutes
UK GDP
US GDP
Trade & Private sector credit data
7
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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THE WEEK IN FIVE CHARTS
8
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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NEWS STORIES
Unemployment falls to 6.1%
Australia's seasonally adjusted unemployment rate for March 2015
was 6.1%, compared with a downwardly revised 6.2% for February
2015, the ABS said. In trend terms, the unemployment rate was
unchanged at 6.2%. The participation rate increased to 64.8% in
March 2015 from 64.7% in February 2015. Full time jobs rose 31.5k,
part time jobs rose 6.1k and the February jobs growth was
increased from an originally reported 15.6k to 42k. This was well
above market expectations and had economists revising their rate
cut forecasts. The AUD surged and the chance of a rate cut in May
moved from around 70% to 50%.
Unmplyment rate
Employment, m/m
Participation rate
March
6.1%
+37.7k
64.8%
February
6.2%
+42.0k
64.7%
Market
6.3%
+15.0k
64.6%
RBA view on jobs data
John Edwards, a member of the RBA said that the rise in March
employment was "unambiguously good" news and indicated that
the economy was "very far" from recession. He went on to say that
it was too soon to say if the economy was on a solid recovery path.
"We know that mining investment is continuing to decline and will
for likely several years to come, and we know that government
spending is very slow and a drag on growth," Edwards told the Wall
Street Journal.
Inflation linked ACGBs at negative real yields
The AOFM sold $200m of inflation linked bonds for maturity in
November 2018 at an average yield of inflation minus 0.076%. This
is believed to be the first time in Australia this has occurred and
means investors were happy to lock in yields that were below the
inflation rate. The AOFM received $925m of bids for the bonds, or
an oversubscription of 4.625 times. ILBs are a small part of the
market and are usually only traded by insurance companies and life
offices seeking to match assets against future inflation adjusted
liabilities. Nonetheless with regular 3y bonds trading at around
1.75% and a CPI of 1.7% it might also suggest that buyers expect
inflation to be much higher as a holder of regular 3y bonds would
lose a lot more (relative to inflation) than a buyer of ILBs if inflation
was to surge higher.
Shopping Centres Australia Property Group debut bond
SCA Property Group (formerly part of Woolworth’s) launched its
inaugural domestic deal, an indicative $150m 6y, fixed-rate seniorunsecured issue with price guidance in the area of Swap + 150bps.
Business confidence and conditions up
Business confidence rose in March from a reading of 0 to +3.
Business conditions were up from +2 to +6 according to NAB's
monthly survey, above its long run average of +4. That helped lift
confidence by three points to +3, so reversing all of February's
downturn.
Fed's Bullard wants a rate rise now
James Bullard, the St Louis Fed president thinks that now could
be the best time to begin raising short-term interest rates, as the
US economy gets ready for a boom and with unemployment
headed below 5%. "There's a mismatch between the monetary
policy side, which is still at emergency settings, and the economy
itself, which is arguably reasonably close to normal… Now may
be a good time to begin normalising monetary policy so that it is
set appropriately for an improving economy over the next
couple of years," he said.
'Murky' data complicates rate hike decision: Lockhart
Atlanta Fed president Dennis Lockhart said the recent ‘murky
data has caused him to question a June interest rate rise, but
said he is confident the economy will remain on track. "I would
lean to a little later versus a little earlier," he said, pointing to
below-par March US employment data as making the economy
difficult to read.
ECB QE is working on the economy
The ECB QE programme is having a real impact on the euro zone
economy, according to a Reuters poll of euro money-market
traders with 14 of 21 saying it was having a meaningful effect,
while seven said it was not working.
Australia's Aaa rating supported by low government debt
Moody's says that Australia's Aaa sovereign rating is supported
by the economy's large size, its flexibility and relatively robust
growth as well as government debt ratios that are lower than in
many similarly rated peers but noted that Australia faces
challenges from the high weight of commodities in merchandise
exports and recent investment growth, difficulties in returning to
a budget surplus, a large net international liability position and a
significant increase in household debt and property prices in
recent years.
IMF sees currencies supporting growth
Recent changes in exchange rates will boost the global economy,
especially Japan and Europe, amid increasing divergence in the
growth paths of the world's major economies, according to the
IMF. The fund kept its global growth forecasts unchanged.
Retail sales in US pick up
US retail sales grew in March as consumers bought more cars
and other goods, suggesting the sharp contraction in Q1 was
temporary. The Commerce Department revealed that retail sales
grew 0.9% in March, in line with expectations.
Fed president John Williams sees less risk of rate retreat
As the job market in the US picks up, there is less likelihood that an
unexpected setback could derail the recovery once the Fed starts to
lift rates, according to San Francisco Fed president John Williams.
9
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13 Apr - 17 Apr 2015
NEWS STORIES
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Chinese economic growth wanes
China’s Q1 GDP, year-on-year showed growth of 7.0% the slowest
pace since the 2009 global recession, matching expectations and
down from 7.3%. Industrial production for March, year-on-year was
up 5.6%, missing expectations of 7.0% growth. Retail sales for
March, year-on-year were up 10.2%, missing expectations of a
10.9% rise. The IMF sees Chinese expansion slowing to 6.8% this
year and 6.3% in 2016.
Brisbane Airport's €1.5bn EMTN programme
Moody's assigned a provisional (P)Baa2 rating with stable outlook
to the new €1500m Medium Term Note programme of Brisbane
Airport Corporation Pty Limited and expects notes issued under the
programme will be used for general corporate purposes and the
refinancing of existing debt.
Fortescue downgrade
Moody's downgraded Fortescue Metals Group Ltd's corporate
family rating to Ba2 from Ba1. At the same time Moody's has
downgraded FMG Resources (August 2006) Ltd's senior unsecured
rating to Ba3 from Ba2 and senior secured rating to Ba1 from Baa3.
The outlook on all ratings is negative.
Origin Energy bond
The Origin Energy-backed consortium is said to be looking at issuing
a bond rather than an asset sale. Origin hopes to issue LNG bonds
as an alternative to an asset sale, securing cash up front and using
future the LNG revenues to pay the coupon on the bond over time.
RaboDirect no longer has parent guarantee for new deposits
RaboDirect has told customers that new deposits with the bank no
longer have the guarantee of its parent, Rabobank Nederland, a
guarantee that it has had since 1994. The Financial Claims Scheme
in Australia covers deposits with RaboDirect up to $250,000.
Current deposits will continue to be guaranteed by the parent and
only new deposits and new interest earned will not be covered.
Japan overtakes China as largest holder of US Treasurys
Data from the US Treasury Department shows that Japan overtook
China in February as the largest holder of Treasurys, a month in
which foreign investors sold US government debt for a fourth
month in a row.
China’s Kaisa Group Holdings facing default
China’s Kaisa Group Holdings needs to repay U$52m in missed
payments for two of its US$ bonds as it seeks to avoid default. The
interest on its 2017 and 2018 notes was due last month.
ECB QE and the risk of asset bubbles
Economic institutes in Germany, Austria and Switzerland have
warned of the risk of stock market bubbles forming as a result of
the ECB's QE programme.
10
www.yieldreport.com.au
WEEKLY REVIEW
13 Apr - 17 Apr 2015
INSIGHT: What a credit downgrade would mean for WATC
S&P has placed WATC on CreditWatch Negative
Leading ratings agency S&P placed Western Australia’s AA+ rating
on CreditWatch Negative last week. This was not unexpected by
markets due to the big hits to the budget from a falling iron ore
price although the shift straight from Outlook Stable to
CreditWatch Negative without any steps in between is unusual.
“Slumping iron ore prices will considerably reduce the state’s
mining royalties, and without corrective actions by the state, we
forecast that its operating position will sustain deficits for the
foreseeable future,” the rating agency said.
WA’s credit rating was last downgraded to AA+ from AAA by S&P in
September 2013 and by one notch to Aa1 by Moody’s in August
2014.
WA treasurer Mike Nahan indicated that he is not going to
undertake corrective actions to the budget, but would instead be
arguing for a further review of the method for calculating the
states’ GST redistribution. The Commonwealth Grants Commission
had recommended no change, but treasurer Joe Hockey has said
he would consult the prime minister and state and territory leaders
before making a final decision.
WA was not alone in seeing its position eroded by the fall in the
price of iron ore and a number of iron producers were also placed
on CreditWatch Negative by S&P at the same time including RIO,
BHP and FMG. S&P has also made downgrades to its iron ore price
forecasts with the agency expecting prices of US$45 in 2015,
US$50 in 20156 and $55 in 2017.
The agency says that WA could avoid the downgrade if the
government’s actions are large enough to “result in operating
surpluses and after-capital account deficits of 5% on average” but
says that the operating deficit is likely to be 3% of revenues per
year for the next three years and then rising to 3.5% in 2018. After
capital, the S&P forecast for the current deficit is 13% in 2014-15
and 10.35% in 2015-16. The agency also indicated that the WA
government has, “limited political will to make difficult decisions.”
Home Page
What are the most likely outcomes?
The two most likely outcomes are a full downgrade to AA or
placing the state on Negative Outlook, with the first of these
more likely than the second. Unless iron ore prices recover
dramatically the goals facing WA are unlikely to be met. On
the other side of the balance sheet, the WA budget is helped
by the weakness of the AUD, offering some potential for a
positive offset to the iron ore story come budget time.
What does this mean for WATC semi issues?
WATC spreads have already been underperforming when
compared to AA+ rated issues from QTC on the back of
worries about iron ore prices so to some extent some of the
shock has already been absorbed but WATC spreads to ACGB
widened by 8-10bp at the long end of the curve after the S&P
announcement and spreads to ACGB for many other semis
were also driven wider after the announcement, in particular
QTC, TCV and TC, but recorded smaller moves wider. ANZ said,
‘We see this price action continuing in the near term’. Some
observers are already asking if spreads already gone too far.
ANZ made the comment, “While we do not envisage any nearterm risk to Australia’s AAA credit rating, further falls in
commodity prices are likely to sustain the rating as an issue of
market focus.”
Westpac’s Damien McColough said, “So the question is have
spreads already gone too far? There is likely to be ongoing
pressure on the whole sector, however we are not medium
term bearish. WATC issues were trading below QTC this time
last week and we thought that was not a correct valuation.
They are now wider than QTC by around 7bps, which given
historical reactions to previous downgrades (a notch being
worth around 9bps) is about correct to reflect the current risk
rewards.”
In other words, the state could only avoid a downgrade if it
improves its operating position by 3% and its fiscal position by 8%,
which seems improbably in the one budget it has left. The most
likely outcome will be a rating downgrade to AA from AA+ shortly
after the next budget. S&P says, “This sustained level of deficits
would make the state’s budgetary performance no longer
consistent with a AA+ rating and would further increase its debt
burden.”
S&P expects to resolve its CreditWatch within 90 days of its
announcement, allowing for the Western Australian governments’
budget for the 2015-16 fiscal year, which is due for release on May
14.
11
www.yieldreport.com.au
WEEKLY REVIEW
13 Apr - 17 Apr 2015
INSIGHT: Chasing higher yields or ‘moving up the risk curve’
Home Page
Debt versus equity risk analysis
As interest rates in Australia head ever southwards, it is becoming increasingly difficult for interest rate investors to secure a
satisfactory return on their money. Investors might feel tempted to abandon fixed income altogether and seek other asset classes with
a view to generating higher returns. This is sometimes called moving up the risk curve and means that investors take on more risk to try
to maintain the returns that they have become used to.
With global central bank money printing creating record prices in nearly all asset classes, it is harder to find returns with acceptable
risks. The latest Bank of America Merrill Lynch fund manager survey showed that global fund managers say that both shares and bonds
are overvalued. The survey also showed that global investors think the US dollar is also well overvalued, more so than at any time since
May 2009. A net 84% of the global managers think bonds are overvalued which represents an increase from a net 75% in the
corresponding survey in March.
It is perhaps a good time to revisit why interest rate returns are lower than equity and property returns in the long run and why it is still
important to include fixed interest in an investment portfolio. The recent issues with ASX-listed Atlas Iron provides a good case study of
the risk reward profile of investments and the company capital structure.
A group comprised of Atlas Iron debt holders are angling for the firm to enter voluntary administration so that the debt holders can
carry out a debt-to-equity conversion. The debt holders in question hold over half of the firm's US$275m Term B loans and have told
the company that they may accelerate the debt on the grounds that Atlas is insolvent and has defaulted on its loan.
The firm has a total debt pile of $327m and is undertaking a review of its operations and capital structure and says that it has not
defaulted on its secured debt facilities and that it remains in discussions with both secured and unsecured creditors. The miner denies
that it is insolvent or in default of its loan.
The group of debt holders are said to be interested in pursuing a debt-to-equity conversion under voluntary administration in order to
wipe out ordinary shareholders and assume control of the company. Doubtless the debt holders have studied closely the case of
Mirabela Nickel, the first listed company whose shares were compulsorily transferred from shareholders to creditors without the
shareholders' consent after the Supreme Court of New South Wales approved the debt-for-equity restructure, through which
bondholders exchanged US$395m of notes for a 98.2 per cent stake in the company.
The figure to the right shows the capital structure of a company and the application of debt and equity in the event of a company
default. At the top of the table are the secured debt holders that have first rights over the assets of the company in a winding up
situation. These investors receive the lowest returns but have the comfort of having the least risk. If there are any assets or value left
after the secured creditors have been paid, the junior or subordinated creditors are paid. Any funds left over are applied to hybrid
holders and last of all equity holders. Equity holders assume the most risk and should receive the highest returns.
In the case of Atlas, the debt holders have the ‘whip hand’ and are
trying to force the issue in order to protect their investment. Equity
holders in these circumstances are in a difficult position and risk losing
substantial portions, if not all, of their investment.
Investors often don’t think about Warren Buffet’s first rule of investing “don’t lose money” - but in these challenging economic times it is a
salutary reminder that moving up the risk curve to chase higher returns
comes with real consequences.
Fixed interest investors get lower returns than equity holders but
generally have a significantly lower risk profile and at maturity get their
money back in most cases. In a world of low yields, investors should
continue to maintain a good part of their investments in fixed interest
that should provide secure, regular returns with lower volatility than
shares or property.
12
www.yieldreport.com.au
WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home page
Best
Rates
TERM DEPOSITS 250k to $1m+
Institution
ANZ
CBA
NAB
Westpac
ADCU
AMP Bank
Arab Bank Australia
Bank of Melbourne
bankmecu
BankSA
Bank of Baroda Australia
Bankwest
Bank of Sydney
BankVic
Beyond Bank
Bendigo Bank
BOQ
Citibank
CUA
Defence Bank
Delphi Bank
Greater Building Society
Heritage Bank
Horizon Credit Union
HSBC
IMB
ING DIRECT
Investec Bank Australia
Macquarie Bank
ME Bank
Newcastle Permanent
People's Choice Crdt Unn
Police Bank
P&N Bank
QT Mutual Bank
Rabobank Australia
RaboDirect
Rural Bank Limited
St.Grge Bank - Except VIC
Suncorp Bank
Teachers Mutual Bank
The Capricornian
UBank
Victoria Tchrs Mtual Bank
Aa2
Aa2
Aa2
Aa2
n/a
A2
BB+ ^
Aa2
n/a
Aa2
Baa3
Aa2
n/a
n/a
n/a
A2
A3
A3
BBB+^
BBB+^
n/a
BBB^
A3
n/a
A1
BBB^
A2
Ba1
A2
A3
A2
n/a
BBB+^
n/a
BBB+^
Aa2
Aa2
A2
Aa2
A2
A3
n/a
Aa2
Baa1
1 mth
nom
2 mth
nom
3 mth
nom
4 mth
nom
5 mth
nom
2.15
2.25
2.25
2.25
2.15
2.25
2.25
2.25
2.60
2.50
2.25
2.60
2.75
2.25
2.25
3.40
2.25
3.00
2.25
3.40
2.25
3.00
2.15
2.45↓
2.25
2.55
2.95
2.70
3.05
2.60
2.90
2.60
3.55
2.25
3.00
2.75
2.15
2.25
2.25
2.25
2.95
2.70
3.05
2.25
2.90
2.25
3.55
2.25
2.80
2.75
2.00
2.50
1.32
2.30
2.55
2.70
1.36
2.55
2.05
2.25
2.85
2.25
2.00
2.25
2.55
2.25
2.90
2.25
2.25
2.25
2.45
2.25
2.55
2.25
2.95
3.25
3.15
2.25
2.90
2.25
3.40
2.90
3.00
2.90
2.80
2.60
2.70
1.39
2.80
2.85
2.60
2.80
3.05
2.60
2.55↓
2.25
2.70
2.85
2.80
3.00
2.80
2.90
2.80
2.90↓
3.00↓
2.65
2.80↓
2.70
2.25
2.95↑
3.00
2.90
2.76
2.95
2.50
2.25
2.65
2.30
2.65
2.30
2.90
2.75
2.80↓ 2.80↓
1.50 1.90
2.55↓
2.00 2.00
2.25 2.25
2.30 2.40
2.35
2.30
2.30
1m
3m
6m
9m
1y
2y
3y
4y
5y
3.40 3.40 3.55 3.65 3.70 3.80 3.90 4.05 4.10
6 mth
nom
9 mth
nom
1y
2y
3y
4y
5y
2.45
2.15
2.60
2.65 2.65 2.70 3.00
2.25
2.25 2.60↓ 2.70↓ 2.80 2.90↓ 3.00↓
2.60
2.30
2.70
2.80 2.85 2.90 3.00
2.25
2.25
2.70
2.75 2.75 2.80 3.20
3.10
3.10
3.15
3.30
3.40
3.40
3.40
3.10 3.20 3.20 3.20
3.10
3.10
3.10
3.10 3.10 3.20 3.30
2.25
2.25
2.70
2.75 2.75 2.80 3.20
2.90
2.90
3.10
3.20 3.30
2.25
2.25
2.70
2.75 2.75 2.80 3.20
3.55
3.65
3.70
3.80 3.90 4.05 4.10
3.05
2.25
3.00
3.10 3.15 3.25 3.15↓
3.00
2.70
3.00
2.75
2.75
3.05
3.20 3.35 3.45 3.55
2.80
2.80
2.90
2.95 3.10 3.20 3.20
2.50 2.25
2.75
2.55
2.80
2.90 3.00 3.10 3.20
2.85 2.70
3.05
3.00
3.10
3.15 3.20 3.30
1.66↑ 1.67
1.69 1.88↑ 1.81↑ 1.55↑ 1.52↑ 1.57↑ 1.53↑
2.90 3.20
3.05
3.05
3.10
3.20 3.25
2.95
3.05
3.05
3.20
2.55
2.85
2.55
2.85
2.90 3.00 3.10 3.20
3.00 3.00
2.80
2.80
2.80
3.20 3.30 3.40 3.50
2.90 2.90
3.00
2.90
3.00
3.10 3.25 3.35 3.50
2.60
2.60
2.60
2.70
2.80 2.90
2.25 2.55↓ 2.25
2.25 2.40↓ 2.60 2.70 2.70 3.00
2.25 2.25
2.25
2.25
2.25
2.90 3.00 3.10 3.20
2.70
2.90
2.70
2.90
3.20
3.05↓ 2.90
3.00 2.91↑ 2.96↑ 3.04↑ 3.12↑
2.75
2.75
2.75
2.75
2.80 2.80
2.85
3.00 3.00
3.00
3.00
3.30
3.35 3.40 3.50 3.60
2.60 2.60
2.70
2.60
2.70
3.15 3.15
3.15
3.00
3.20
3.20 3.30 3.40 3.50
3.00
3.10
2.85 2.85
3.00
3.00 3.05↓ 3.20 3.35 3.35 3.35
2.80↓ 2.80↓ 3.00
3.00 3.00↓ 3.10↓ 3.15↓
2.25 1.90
2.65
2.60
2.70
2.85 3.00 3.20 3.40
2.90↓ 2.80↓ 2.90↓ 3.00↓ 3.15↓ 3.20↓ 3.50↓
2.00 2.00
2.80
2.25
2.85
2.95 3.05 3.15 3.25
2.60 2.25
2.25
2.25
2.70
2.75 2.75 2.80 3.20
2.90 2.40↓ 2.95↓ 2.95↓ 3.00
3.10 3.10 3.20↓ 3.25↓
3.00 3.00
3.10
3.15
3.30
3.30 3.35
3.05
3.20
2.76
2.86
2.76
2.91
2.95
3.00
3.00
3.10
3.20 3.30 3.40 3.50
*For comparison purposes rates to 1y are paid at Maturity. Rates longer than 1y are paid annually. Rates are checked each day on company
websites and rate sheets. Arrows show rates that have changed in the last week. Highest rate is shaded. Ratings are Moody’s except for ^which is
S&P.
13
www.yieldreport.com.au
WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
AUST GOVT BONDS
MATURITY
COUPON (%) ISSUE SIZE ($M)
CLOSING YIELD
Δ WEEK
Δ MONTH
WEEK HIGH
WEEK LOW
21 Oct 15
4.75
13898
1.97
0.07
0.07
1.97
1.86
15 Jun 16
4.75
21899
1.89
0.04
0.03
1.89
1.80
15 Feb 17
6.00
21095
1.85
0.04
0.06
1.85
1.72
21 Jul 17
4.25
18899
1.80
0.04
0.02
1.80
1.68
21 Jan 18
15 Mar 19
5.50
5.25
20499
21446
1.78
1.82
0.02
0.02
-0.01
-0.01
1.78
1.82
1.67
1.71
21 Oct 19
2.75
10300
1.88
0.02
-0.01
1.89
1.77
15 Apr 20
4.50
20396
1.92
0.01
-0.03
1.92
1.81
21 Nov 21
1.75
2000
2.01
0.01
n/a
2.01
1.90
15 May 21
5.75
21599
2.04
0.02
-0.05
2.04
1.95
15 Jul 22
5.75
18199
2.15
0.00
-0.06
2.17
2.08
21 Apr 23
5.50
21299
2.22
-0.01
-0.09
2.23
2.14
21 Apr 24
2.75
21500
2.29
-0.02
-0.09
2.31
2.23
21 Apr 25
3.25
16800
2.35
-0.02
-0.11
2.37
2.28
21 Apr 26
4.25
14800
2.40
-0.02
-0.12
2.42
2.33
21 Apr 27
4.75
13699
2.45
-0.03
-0.13
2.47
2.39
21 Apr 29
3.25
9699
2.59
-0.02
-0.12
2.61
2.53
21 Apr 33
4.50
9800
2.71
-0.02
-0.14
2.72
2.64
21 Apr 37
3.75
7000
2.82
-0.02
-0.14
2.83
2.75
The Australian Government is rated AAA by S&P and Aaa by Moody’s
ASX LISTED AUST GOVT BONDS
MATURITY
COUPON (%) ISSUE SIZE ($M)
WEEKLY T/OVER
$ VALUE
ASX CODE
15-Apr-2015
6.25
14796
14796
GSBG15
21-Oct-2015
4.75
13898
13898
GSBS15
15-Jun-2016
15-Feb-2017
21-Jul-2017
4.75
6.00
4.25
21899
21095
18899
21899
21095
18899
GSBK16
GSBC17
GSBM17
21-Jan-2018
5.50
20500
20500
GSBA18
15-Mar-2019
5.25
20847
20847
GSBE19
21-Oct-2019
2.75
7600
7600
GSBS19
15-Apr-2020
4.50
20396
20396
GSBG20
15-May-2021
5.75
21599
21599
GSBI21
15-Jul-2022
5.75
17499
17499
GSBM22
21-Apr-2023
5.50
21299
21299
GSBG23
21-Apr-2024
2.75
19300
19300
GSBG24
21-Apr-2025
3.25
13800
13800
GSBG25
21-Apr-2026
4.75
13500
13500
GSBG26
21-Apr-2027
4.75
12999
12999
GSBG27
21-Apr-2029
3.25
8999
8999
GSBG29
21-Apr-2033
4.50
9100
9100
GSBG33
21-Jun-2035
2.75
4250
4250
GSBG35
21-Apr-2037
4.50
7000
7000
GSBG37
14
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
AUST SEMI GOVT BONDS
Issues underlined are guaranteed by the Commonwealth Government
MATURITY
COUPON (%)
ISSUE SIZE
WEEK HIGH
WEEK LOW
CLOSING YIELD
Δ WEEK
Δ MONTH
TCV
17 Aug 15
8.00
814
2.19
2.15
2.19
0.00
-0.01
QTC
14 Oct 15
6.00
653
2.04
1.96
2.04
0.04
0.04
NTTC
20 Oct 15
6.25
500
2.14
2.03
2.13
0.05
0.07
QTC
21 Oct 15
6.00
5075
2.12
2.04
2.11
0.04
0.04
TCV
10 Nov 15
2.75
1190
2.07
1.96
2.05
0.07
0.00
NSWTC
01 Apr 16
6.00
4380
1.97
1.88
1.97
0.05
-0.07
QTC
21 Apr 16
6.00
5293
2.05
1.96
2.05
0.06
-0.02
WATC
TCV
08 Jun 16
15 Nov 16
3.00
5.75
3243
3360
2.05
1.98
1.96
1.89
2.05
1.98
0.06
0.07
-0.02
-0.07
NTTC
20 Nov 16
5.75
500
2.13
2.03
2.11
0.05
0.03
NSWTC
20 Feb 17
4.00
4517
1.99
1.86
1.99
0.05
0.01
NSWTC
01 Mar 17
5.50
n/a
1.92
1.79
1.92
0.04
0.01
WATC
15 Jul 17
8.00
5102
2.10
1.98
2.09
0.05
0.02
QTC
14 Sep 17
6.00
n/a
1.95
1.84
1.95
0.02
0.00
SAFA
20 Sep 17
5.75
2403
2.07
1.96
2.06
0.03
0.00
TASCORP
20 Sep 17
5.00
980
2.08
1.96
2.08
0.04
0.00
QTC
21 Sep 17
3.50
6109
2.07
1.96
2.07
0.02
-0.01
NTTC
17 Nov 17
4.75
500
2.12
1.99
2.10
0.03
0.05
TCV
17 Nov 17
3.50
2817
2.03
1.90
2.03
0.04
0.01
NSWTC
01 Feb 18
6.00
5650
2.01
1.89
2.01
0.04
-0.02
QTC
21 Feb 18
6.00
6477
2.12
1.99
2.12
0.05
-0.01
ACTTREAS
07 Jun 18
5.50
550
2.11
1.99
2.11
0.05
0.01
NTTC
20 Sep 18
4.75
500
2.19
2.08
2.19
0.02
-0.01
WATC
23 Oct 18
3.75
3747
2.23
2.11
2.23
0.08
0.05
TCV
15 Nov 18
5.50
4346
2.08
1.96
2.08
0.04
-0.03
NSWTC
20 Mar 19
3.50
4402
2.13
2.01
2.12
0.03
-0.03
NSWTC
01 Apr 19
6.00
n/a
2.04
1.92
2.04
0.04
-0.03
QTC
14 Jun 19
6.25
n/a
2.13
2.01
2.13
0.05
-0.04
QTC
21 Jun 19
4.00
5523
2.27
2.15
2.27
0.05
-0.05
SAFA
06 Aug 19
4.75
2000
2.29
2.16
2.28
0.05
0.00
WATC
QTC
15 Oct 19
21 Feb 20
7.00
6.25
3754
9686
2.35
2.33
2.21
2.22
2.34
2.32
0.10
0.03
0.06
-0.08
NSWTC
01 May 20
6.00
6131
2.23
2.12
2.23
0.03
-0.06
ACTTREAS
22 May 20
4.25
570
2.31
2.21
2.31
0.03
-0.02
NSWTC
01 Jun 20
6.00
n/a
2.13
2.03
2.12
0.02
-0.07
TASCORP
15 Jun 20
6.00
602
2.36
2.25
2.35
0.03
-0.04
ISSUER
15
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AUST SEMI GOVT BONDS
ISSUER
TCV
NSWTC
SAFA
QTC
QTC
WATC
NTTC
NSWTC
TASCORP
ACTTREAS
QTC
TCV
NSWTC
NSWTC
QTC
WATC
SAFA
NTTC
QTC
NSWTC
TCV
QTC
WATC
NTTC
TCV
NSWTC
TCV
QTC
MATURITY
COUPON (%)
ISSUE SIZE ($m)
WEEK HIGH
WEEK LOW
CLOSING
YIELD
Δ WEEK
Δ MONTH
15 Jun 20
08 Apr 21
20 May 21
14 Jun 21
21 Jun 21
15 Jul 21
20 Sep 21
01 Mar 22
08 Mar 22
11 Apr 22
21 Jul 22
17 Oct 22
20 Apr 23
01 May 23
21 Jul 23
16 Oct 23
20 Nov 23
15 Mar 24
22 Jul 24
20 Aug 24
17 Dec 24
21 Jul 25
23 Jul 25
15 Mar 26
17 Nov 26
01 May 30
20 Dec 32
14 Mar 33
6.00
4.00
5.00
6.00
5.50
7.00
4.25
6.00
4.25
4.25
6.00
6.00
4.00
6.00
4.25
6.00
4.25
6.00
5.75
5.00
5.50
4.75
5.00
6.00
5.50
6.00
4.25
6.50
6185
2567
2044
n/a
6416
3573
650
6205
565
550
7558
5995
3678
n/a
5568
2427
770
650
6585
6119
4871
2060
1041
650
3367
362
n/a
725
2.24
2.34
2.50
2.34
2.51
2.57
2.56
2.41
2.61
2.51
2.63
2.46
2.54
2.42
2.76
2.81
2.76
2.85
2.82
2.62
2.63
2.91
2.96
2.98
2.78
2.96
3.10
3.24
2.13
2.25
2.40
2.26
2.42
2.43
2.38
2.33
2.52
2.35
2.54
2.37
2.45
2.33
2.67
2.68
2.67
2.74
2.74
2.54
2.55
2.83
2.84
2.88
2.69
2.88
3.02
3.18
2.24
2.34
2.48
2.34
2.51
2.56
2.56
2.40
2.60
2.51
2.62
2.45
2.52
2.40
2.75
2.79
2.75
2.81
2.81
2.61
2.61
2.90
2.93
2.95
2.77
2.94
3.10
3.23
0.03
0.02
0.03
0.03
0.04
0.10
0.05
0.01
0.03
0.03
0.03
0.01
0.00
0.00
0.02
0.08
0.01
0.00
0.02
0.00
0.00
0.03
0.07
0.00
0.00
-0.01
0.01
-0.01
-0.06
-0.09
-0.13
-0.11
-0.11
-0.02
-0.07
-0.11
-0.06
-0.07
-0.12
-0.11
-0.15
-0.14
-0.13
-0.06
-0.12
-0.06
-0.15
-0.15
-0.12
-0.17
-0.10
-0.09
-0.14
-0.13
-0.17
-0.18
Issues underlined are guaranteed by the Commonwealth Government
AUST SEMI GOVT BONDS - FLOATING RATE NOTES
MATURITY
NSWTC
NSWTC
SAFA
WATC
QTC
QTC
WATC
WATC
WATC
NSWTC
QTC
SAFA
WATC
SAFA
24 Aug 15
08 Apr 16
20 May 16
25 Jun 16
19 Sep 16
06 Mar 17
27 Mar 17
12 Dec 17
21 May 18
20 Sep 18
19 Nov 18
10 Dec 18
19 Nov 19
24 Feb 20
ISSUE SIZE ($m) TRADING MARGIN (bps) COUPON MARGIN (bps) NEXT PAYMENT DATE RESET RATE SWAP RATE
250
2500
2000
1970
2575
2380
1204
650
1480
1250
850
2000
1499
2000
0
-6
2
0
-1
0
0
0
1
-2
3
4
2
6
-10
8
20
3
8
9
8
12
11
3
6
7.5
21
20
25/05/15
08/07/15
22/05/15
25/06/15
19/06/15
09/06/15
29/06/15
12/06/15
21/05/15
22/06/15
19/05/15
10/06/15
19/05/15
24/05/15
2.364
2.294
2.371
2.305
2.319
2.337
2.305
2.331
2.375
2.313
2.382
2.335
2.382
2.365
2.236
2.082
2.069
2.062
2.052
2.056
2.057
2.080
2.105
2.162
2.191
2.201
2.311
2.332
FRNs pay quarterly interest with the rate reset each quarterly payment date.
16
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WEEKLY REVIEW
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AUST CORPORATE BONDS
ISSUER
MATURITY
COUPON (%)
RATING
WEEK HIGH
WEEK LOW
ANZ
Westpac
Transurban
Stockland
Fonterra
Telstra
Melb Airport
Mirvac Finance
Wesfarmers
Westpac
Suncorp (CB)
CBA (CB)
Aust Post
Westpac (CB)
NAB
Westpac
Crown
BP Cap
BHP
Telstra
HSBC
Westpac
CBA
NAB
ANZ
NAB
Syd Airport
ANZ
Lendlease
Telstra
Westpac
Woolworths
Wesfarmers
CBA
Bris Airport
Stockland
DBNGP
Westfield Retail
CFS Retail
CBA
Westpac
Wesfarmers
Qantas
Lendlease
Melb Airport
Telstra
Perth Airport
Mirvac Fin
Bris Airport
Aust Post
Stockland
Uni Sydney
09 May 16
09 May 16
08 Jun 16
01 Jul 16
11 Jul 16
02 Aug 16
25 Aug 16
16 Sep 16
04 Nov 16
18 Nov 16
06 Dec 16
25 Jan 17
06 Feb 17
06 Feb 17
15 Feb 17
20 Feb 17
18 Jul 17
05 Sep 17
18 Oct 17
15 Nov 17
16 Nov 17
24 Jan 18
25 Jan 18
07 Mar 18
17 Apr 18
23 May 18
06 Jul 18
06 Nov 18
13 Nov 18
13 Nov 18
25 Feb 19
21 Mar 19
28 Mar 19
24 Apr 19
09 Jul 19
06 Sep 19
11 Oct 19
23 Oct 19
19 Dec 19
05 Feb 20
11 Feb 20
12 Mar 20
27 Apr 20
13 May 20
04 Jun 20
15 Jul 20
23 Jul 20
18 Sep 20
21 Oct 20
13 Nov 20
25 Nov 20
16 Apr 21
6.75
6.75
6.75
7.5
6.25
7.00
7.00
8.00
6.00
7.25
4.75
5.75
5.50
5.75
6.00
6.00
5.75
4.50
3.75
4.00
4.25
4.25
4.25
7.25
4.25
4.00
7.75
4.50
5.50
4.50
4.50
6.00
6.25
4.25
8.00
5.50
6.00
5.00
5.00
7.25
7.25
4.75
6.50
6.00
5.00
7.75
6.00
5.75
6.00
5.00
8.25
4.75
AAAAAAA+
A
ABBB+
AAAn/a
n/a
AA
n/a
AAAABBB
A
A+
A
AAAAAAAAAAAABBB
AABBBA
AAAAAABBB
ABBBA
A
AAAAABB+
BBBAA
BBB
BBB+
BBB
AA
An/a
2.37
2.39
3.25
2.91
2.68
2.44
2.96
3.11
2.59
2.42
2.51
2.37
2.65
2.38
2.45
2.45
3.32
2.87
2.69
2.57
2.74
2.60
2.59
2.63
2.66
2.68
3.36
2.77
3.67
2.67
2.85
2.96
2.93
2.85
3.33
3.44
3.95
3.38
3.24
2.99
3.02
3.12
5.29
3.92
3.34
2.90
3.48
3.65
3.48
3.02
3.75
2.91
2.28
2.30
3.11
2.82
2.58
2.33
2.87
3.01
2.48
2.31
2.40
2.27
2.53
2.27
2.34
2.34
3.22
2.76
2.58
2.47
2.60
2.49
2.47
2.51
2.54
2.55
3.20
2.67
3.55
2.57
2.73
2.83
2.83
2.73
3.22
3.32
3.83
3.26
3.13
2.87
2.89
3.01
5.00
3.81
3.23
2.82
3.35
3.56
3.38
2.94
3.58
2.78
CLOSING
YIELD
Δ WEEK
Δ MONTH
2.37
2.39
3.25
2.91
2.67
2.44
2.96
3.11
2.59
2.42
2.51
2.37
2.64
2.38
2.45
2.45
3.32
2.87
2.69
2.57
2.74
2.60
2.58
2.62
2.66
2.66
3.36
2.77
3.65
2.67
2.83
2.93
2.91
2.83
3.32
3.42
3.92
3.35
3.22
2.96
2.99
3.09
5.09
3.90
3.33
2.90
3.44
3.65
3.46
0.04
0.03
0.11
0.03
0.02
0.05
0.02
0.04
0.04
0.03
0.04
0.02
0.02
0.03
0.05
0.03
0.01
0.03
0.04
0.02
0.06
0.04
0.03
0.03
0.03
0.01
0.05
0.02
0.01
0.02
0.06
0.01
0.00
0.01
0.01
0.05
0.00
0.00
0.00
0.00
0.04
0.00
0.04
0.00
0.01
0.01
0.00
0.02
-0.01
0.02
0.02
0.04
0.00
0.00
0.02
-0.02
0.01
0.02
0.00
-0.01
0.01
-0.01
0.03
0.00
0.00
0.01
0.03
0.12
0.03
0.03
0.00
-0.04
0.00
0.00
0.00
0.00
-0.03
0.04
0.00
-0.05
0.07
-0.01
-0.08
-0.04
-0.03
-0.04
-0.03
-0.09
-0.06
-0.05
-0.05
-0.36
-0.04
-0.04
-0.04
-0.05
-0.08
-0.07
3.75
2.86
0.10
-0.04
0.05
-0.08
17
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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ASX LISTED FLOATING RATE NOTES
COMPANY
$100 Face Val
CODE
BOND
TYPE
MATURITY
ISSUE
MARGIN
TRADING
MARGIN
Δ WEEK
WEEK
CLOSE
YTM
Est**
S&P RATING
Comp/Hybrid
AGL
AGKHA
Sub Note
08 Jun 19
3.80%
2.53%
-0.13%
105.35
4.79%
BBB/BB
ANZ
ANZHA
Sub Note
14 Jun 17
2.75%
1.35%
0.01%
103.25
3.61%
AA-/A-
APT Pipelines
AQHHA
Sub Note
31 Mar 18
4.50%
2.28%
-0.23%
106.40
4.54%
BBB/BB+
Australian Unity
AYUHA
Bond
14 Apr 16
3.55%
1.48%
-0.67%
102.00
3.74%
BBB/BBB
CBA Bond
CBAHA
Snr. Bond
24 Dec 15
1.05%
0.79%
-0.04%
100.15
3.05%
AA-/AA-
Colonial
CNGHA
Sub Note
31 Mar 17
3.25%
1.89%
-0.07%
102.75
4.15%
A+/BBB+
Caltex
CTXHA
Sub Note
15 Sep 17
4.50%
2.24%
-0.01%
105.70
4.50%
BBB+/BBB-
Crown
CWNHA
Sub Note
14 Sep 18
5.00%
3.67%
0.22%
104.70
5.93%
BBB/BB+
Goodman Group
GMPPA
Sub Note
30 Sep 18
3.90%
3.15%
-0.16%
102.60
5.41%
BBB/BBB-
Bentham IMF
IMFHA
Bond
30 Jun 19
4.20%
3.04%
-0.11%
104.50
5.30%
UnR/UnR
MYOB
MYBG
Sub Note
20 Dec 17
6.70%
5.96%
-0.04%
102.45
8.22%
B+/B-
Nat Aust Bank
NABHB
Sub Note
18 Jun 17
2.75%
1.27%
-0.06%
103.45
3.53%
AA-/A-
Origin
ORGHA
Sub Note
22 Dec 16
4.00%
3.51%
-0.15%
101.18
5.77%
BBB/BB
Primary Hth Care
PRYHA
Snr. Bond
28 Sep 15
4.00%
1.19%
-0.31%
101.50
3.45%
BBB-/BB+
Suncorp Metway
SUNPD
Sub Note II
21 Nov 18
2.85%
2.07%
-0.08%
103.30
4.33%
A /BBB+
Tabcorp
TAHHB
Sub Bond
22 Mar 17
4.00%
2.31%
0.30%
103.50
4.57%
BBB-/BB+
Tatts
TTSHA
Snr. Bond
05 Jul 19
3.10%
1.55%
-0.02%
106.10
3.81%
BBB+/BBB+
Westpac
WBCHA
Sub Note
23 Aug 17
2.75%
1.40%
0.02%
103.72
3.66%
AA-/A-
Westpac
WBCHB
Sub Note II
22 Aug 18
2.30%
1.68%
-0.10%
102.55
3.94%
AA-/A-
Woolworths
WOWHC
Sub Note
24 Nov 16
3.25%
1.54%
0.12%
103.38
3.80%
A-/BBB
ASX LISTED CONVERTIBLE NOTES
COMPANY
Aust Foundation
Peet Group
CODE
FACE VALUE
MATURITY
WEEK HIGH
WEEK LOW
WEEK CLOSE
YTM
SIZE ($m)
AFIG
PPCG
$100.00
$100.00
28 Feb 17
16 Jun 16
121.50
106.50
120.00
106.50
120.00
106.50
-3.65%
6.43%
223
40
** YTM for floating rate securities is an estimate using current interest rates. This will vary if rates change.
Source: Evans & Partners. Dealing Contact Michael Saba +61 3 9631 9813
ASX LISTED FIXED RATE BONDS
COMPANY
CODE
TYPE
MATURITY COUPON WK HIGH WK LOW WK CLOSE
Heritage BS HBSHB Sub. Bond 20 Jun 17
7.25%
108.00
107.00
108.00
YTM
NEXT DIV AND EX DATE
6.71% $1.938 on 20 Jun 2015 (A)
S&P RATING
BBB+/BBB+
** YTM for floating rate securities is an estimate using current interest rates. This will vary if rates change.
Source: Evans & Partners. Dealing Contact Michael Saba +61 3 9631 9813
18
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
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ASX LISTED HYBRIDS
CODE
HYBRID
TYPE
MATURITY OR MARGIN TRADING
STEP-UP DATE INC FRANK MARGIN
∆
WEEK
WEEK
CLOSE
YTM
Est**
S&P CREDIT
RATING
COMP/HYBRID
ANZ Banking Group
ANZPA
MCPS I
16/12/2016
3.10%
2.68%
0.28%
101.10
4.94%
AA-/BBB
ANZ Banking Group
ANZ Banking Group
ANZPC
ANZPD
MCPS II
MCPS II
28/09/2017
1/09/2021
3.10%
3.40%
2.94%
3.63%
-0.04%
0.00%
101.00
99.48
5.23%
5.92%
AA-/BBB+
AA-/BBB+
ANZ Banking Group
ANZPE
Capital Note
24/03/2022
3.25%
3.60%
0.03%
98.35
5.89%
AA-/
Bendigo Bank
BENHB
Perpetual
30/09/2054
1.00%
2.30%
0.14%
77.99
4.56%
A-/BBB
Bendigo Bank
BENPB
Step Up
15/06/2015
1.50%
7.75%
0.73%
99.40
10.01%
A-/BBB
Bendigo Bank
BENPD
MCPS II
13/12/2017
5.00%
3.37%
-0.07%
106.40
5.66%
A-/BBB-
Bendigo Bank
BENPE
MCPS II
30/11/2020
3.20%
3.72%
0.07%
99.60
6.01%
n/a
Bank Of Queensland
BOQPD
MCPS II
15/04/2018
5.10%
3.45%
-0.26%
104.50
5.74%
BBB+/BB+
6/04/2016
15/12/2018
15/12/2022
25/05/2020
30/06/2051
1/05/2017
16/12/2019
Perpetual
24/03/2021
7/06/2019
Perpetual
Perpetual
20/03/2019
17/12/2020
Perpetual
30/06/2052
Perpetual
Perpetual
17/12/2017
17/06/2020
2/12/2054
31/03/2018
8/03/2019
22/09/2022
30/06/2016
1.05%
3.80%
2.80%
3.40%
N/A
4.00%
4.00%
1.70%
3.30%
4.00%
3.90%
1.25%
3.20%
3.25%
3.90%
N/A
4.85%
0.75%
4.65%
3.40%
4.75%
3.25%
3.20%
3.05%
1.00%
2.70%
3.06%
3.61%
3.81%
0.00%
3.21%
2.91%
3.07%
3.49%
3.33%
4.75%
2.67%
3.35%
3.48%
4.95%
8.80%
4.38%
2.06%
3.06%
3.56%
6.08%
2.83%
3.36%
3.46%
#N/A
-0.04%
0.30%
-0.01%
-0.07%
0.00%
-0.05%
-0.11%
0.00%
-0.10%
-0.21%
0.06%
0.02%
0.03%
-0.02%
0.05%
0.00%
0.01%
0.00%
-0.11%
-0.05%
0.01%
-0.14%
0.00%
-0.08%
#N/A
197.00
102.95
95.48
98.99
65.25
104.31
104.99
78.62
99.38
104.25
89.11
77.20
99.87
99.35
86.90
7.50
106.20
77.00
104.50
99.75
88.00
101.37
100.00
97.88
98.20
4.96%
5.32%
5.87%
6.07%
0.00%
5.50%
5.17%
5.33%
5.78%
5.62%
7.01%
4.93%
5.61%
5.74%
7.24%
11.09%
6.67%
4.32%
5.32%
5.82%
8.37%
5.12%
5.62%
5.72%
#N/A
AA-/BBB
AA-/BBBAA-/BBBn/a
n/a
A+/AA+/BBB+
A/BB+
n/a
A-/BBBBB+/BB
AA-/BBB
AA-/BBBAA-/BBBBB /B+
n/a
BBB/BB+
A+/AA /BBB+
A /BBB+
BB+/BBAA-/BBBAA-/BBBAA-/BBB+
AA-/BBB
COMPANY
CBA PERLS 3
PCAPA
Step Up
CBA PERLS 6
CBAPC
MCPS II
CBA PERLS 7
CBAPD
MCPS II
Challenger
CGFPA Capital Note
Elders
ELDPA
Perp'l Pref
IAG
IAGPC
MCPS II
IAG RES
IANG
Reset pref
Macquarie Bank
MBLHB Income Sec
Macquarie
MBLPA Capital Note
Macquarie
MQGPA Capital Note
Multiplex SITES
MXUPA Perp'l Pref
Nat Aust Bank
NABHA Income Sec
Nat Aust Bank
NABPA
MCPS II
Nat Aust Bank
NABPB
MCPS II
Nufarm
NFNG
Step Up
Paperlinx
PXUPA
Perp'l Pref
Ramsay Health Care
RHCPA
Perp'l Pref
Suncorp-Metway
SBKHB
Income Sec
Suncorp
SUNPC
MCPS II
Suncorp
SUNPE
MCPS II
Seven Network TELYS 4 SVWPA
Perp'l Pref
Westpac
WBCPC
MCPS II
Westpac
WBCPD
MCPS II
Westpac
WBCPE
MCPS II
Westpac
WCTPA
Step Up
** YTM for floating rate securities is an estimate using current interest rates. This will vary if rates change.
Source: Evans & Partners. Dealing Contact Michael Saba +61 3 9631 9813
19
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
MANAGED FUNDS*
AUSTRALIAN CASH FUNDS
1m (%)
3m (%)
1y (%)
3y (%)
5y (%)
Adelaide Cash Management Trust
BT Premium Cash
CFS Cash Management Trust
0.15
0.19
0.15
0.47
0.57
0.41
1.98
2.37
1.77
2.35
n/a
2.18
3.04
n/a
2.81
CFS Premier Cash Management Trust
0.17
0.50
2.17
2.62
3.28
EQT Cash Management
0.16
0.48
1.83
2.05
2.72
IOOF Cash Management Trust
0.21
0.67
2.80
3.21
3.89
Perpetual Cash Management
0.13
0.40
1.66
2.04
2.73
Sandhurst Cash Common Fund
UBS Cash Fund
0.16
0.20
0.49
0.65
1.94
2.59
2.27
2.98
2.97
3.65
1m (%)
3m (%)
1y (%)
3y (%)
5y (%)
AMP Capital Managed Treasury
Australian Ethical Cash Trust
BT WE BT Enhanced Cash
0.21
0.19
0.19
0.67
0.56
0.58
2.74
2.80
2.70
3.22
3.56
3.53
3.98
4.12
4.30
BT Wholesale Enhanced Cash
0.24
0.71
3.26
4.11
4.94
Dimensional Short Term Fixed Interest
0.22
0.70
2.74
3.02
3.97
Fiducian Capital Safe
0.19
0.55
2.43
3.21
4.03
IOOF MultiMix Cash Enhanced Trust
0.22
0.58
2.86
4.05
4.70
Legg Mason Western Asset Cash Plus A
MIF
0.25
0.18
0.55
0.96
2.67
4.50
3.91
n/a
4.82
n/a
MLC Wholesale Horizon 1 Bond Portfolio
0.21
0.99
3.00
3.56
4.16
Perennial Cash Enhanced Trust
0.21
0.55
2.86
4.33
4.96
Perpetual High Grade Treasury
0.29
0.80
4.10
5.00
5.65
Sandhurst Strategic Income A
0.27
0.78
3.47
4.84
0.00
Smarter Money Active Cash Fund
0.26
0.90
4.05
5.23
n/a
UBS Cash Plus
0.26
0.81
3.07
3.52
4.40
UCA Cash Portfolio
0.30
0.93
3.96
4.56
n/a
Vanguard® Cash Reserve Fund
0.20
0.63
2.60
2.86
3.59
Vanguard® Cash Plus Fund
0.25
0.87
2.93
3.12
3.84
Bloomberg Bank Bill Index
0.21
0.67
2.72
3.02
3.76
AUSTRALIAN ENHANCED CASH FUNDS
*End of March 2015. Return in AUD after Fees
Underlined Funds can be applied for and redeemed via the ASX mFund platform
20
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
MANAGED FUNDS*
AUSTRALIAN FIXED INTEREST
1m (%)
3m (%)
1y (%)
3y (%)
5y (%)
Aberdeen Australian Fixed Income
Advance Aus Fixed Intr Multi-Blend
AMP Capital Corporate Bond
Alpha Enhanced Yield Alpha^ (IWM05)
AMP FLI S2-AMP Australian Bond
AMP Gen-BlackRock Aust Fixed Int Ind
Antares Premier Fixed Income
Altius Bond
BT Enhanced Credit WS
BT Fixed Interest Retail
BT Fixed Interest WS
BT Government Bond
BT-Schroder Hybrid Securities
CFS FC Inv-Aberdeen Aus Fixed Inc
CFS FC W Inv-CFS W Australian Bond
DDH Fixed Interest
IOOF/Perennial Flex Fixed Interest
Jamison Coote Bonds Active
Legg Mason Western Asset Australian (LMA04)
Macquarie Australian Fixed Interest
Macquarie Core Plus Australian Fxd Intr
Mercer Australian Sovereign Bond Fund
Millinium Fixed Income Mandate
Nikko AM Australian Bond
OnePath OA FR IP-Optimix Aus Fixed Int
Perennial Australian Fixed Interest Tr
Perennial Fixed Interest Wholesale
Perennial Tactical Income Trust
Perpetual WFIA-Schroder Fixed Income
Perpetual WFIA-Vanguard Aust FI Idx
0.76
0.70
0.30
-0.32
0.61
0.66
0.72
0.79
0.55
0.57
1.24
0.81
-0.03
0.67
0.58
0.80
0.22
0.87
0.81
0.87
0.62
0.76
0.92
0.87
0.60
0.70
0.69
0.34
0.35
0.64
2.64
2.90
1.40
1.27
2.27
2.36
2.87
1.37
2.22
2.29
3.27
2.82
0.59
2.40
1.82
2.51
2.62
2.71
2.62
2.83
3.29
3.11
2.85
2.78
2.18
2.12
2.10
0.84
1.62
2.31
10.47
10.70
5.85
3.20
9.39
9.76
10.68
5.67
9.18
10.46
13.36
12.98
2.35
9.20
7.38
10.44
7.90
n/a
10.94
10.51
10.64
12.52
12.00
10.83
9.70
9.47
9.35
4.16
7.49
9.61
6.83
7.00
7.34
n/a
6.84
5.86
6.98
5.51
7.39
5.85
7.55
6.97
4.37
5.60
5.81
7.54
6.75
n/a
8.11
7.83
7.76
6.67
13.58
7.14
6.58
7.55
7.42
5.56
5.45
5.71
7.56
7.50
8.05
n/a
0.00
6.39
7.55
0.00
7.64
6.37
7.77
7.62
5.00
6.34
6.34
7.64
6.77
n/a
8.45
8.20
8.23
7.23
n/a
7.49
0.00
7.81
7.78
6.06
6.08
6.22
PIMCO EQT Australian Bond
PIMCO EQT Wholesale Australian Bond B^ (PMF04)
PIMCO EQT Wholesale Australian Focus B^ (PMF05)
SSgA Australian Fixed Income
UBS Australian Bond
Vanguard Australian Fixed Interest Index
Vanguard Australian Govt Bond Index
Bloomberg/UBS Composite Bond Index (0+yrs)
0.73
0.74
0.47
0.75
0.76
0.75
0.83
0.76
2.83
2.88
1.57
2.62
2.35
2.62
2.74
2.67
10.88
11.13
6.27
10.97
9.60
10.89
11.73
11.13
7.07
7.28
5.23
6.79
6.93
6.89
6.76
7.11
7.82
8.03
5.89
7.28
7.28
7.40
7.43
8.66
*End of March 2015. Returns in AUD after Fees.
Underlined Funds can be applied for and redeemed via the ASX mFund platform
21
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WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
MANAGED GLOBAL BOND
GLOBAL BOND FUNDS
1m (%)
3m (%)
1y (%)
0.94
0.47
0.20
2.61
2.59
1.80
10.65
8.03
8.48
6.86
6.55
6.41
7.23
6.90
7.03
AMP Capital International Bond4
0.24
1.93
9.04
6.99
7.41
ANZ OA IP-CFS Global Credit Income EF17
-0.01
0.97
2.02
5.12
5.04
0.19
1.62
4.18
10.6
9.89
0.37
3.39
5.00
10.39 12.20
0.03
1.09
4.09
9.34
7.70
BlackRock WS International Bond7
0.71
2.49
9.99
7.95
8.22
6
BT Global Fixed Interest WS16
1.88
3.41
13.14
7.73
7.70
7
1.90
3.45
13.33
7.88
8.62
0.67
2.23
8.89
6.62
6.83
9
0.65
2.82
9.27
9.28
10.50
10
DDH Global Fixed Interest Alpha17
-0.05
0.81
-3.79
3.31
1.78
Dimensional Five-Year Diversified F/I
0.75
1.94
6.17
5.16
6.72
Dimensional Global Bond Trust4
0.76
3.00
10.68
7.38
0.00
Dimensional Two-Year Diversified F/I
0.37
0.93
3.12
3.44
4.29
14
15
Aberdeen Global Government Bond
Advance Int Fix Intr Multi-Blend4
AMP Capital FD Intl Bond A3
Bentham W/S Global Income
16
1
Bentham W/S High Yield21
BlackRock Monthly Income C
17
BT Institutional Enhanced Gbl Fixed Int
16
CFS Wholesale Global Bond15
CFS Wholesale Global Corporate Bond
Fidelity Global Strategic Bond
4
4
3y (%) 5y (%)
BENCHMARKS
1
2
3
4
5
8
11
12
13
0.33
3.04
8.09
0.00
0.00
Franklin Templeton Global Aggregate Bd W 4
0.97
4.36
13.85
0.00
0.00
Franklin Templeton Multisector Bond I11
-0.86
1.15
3.26
8.32
9.91
GAM Absolute Return Bond (AU)12
-0.75
0.20
-1.94
2.84
n/a
17
Ibbotson Dynamic Defensive Trust19
0.22
1.71
7.29
5.90
6.80
18
Legg Mason Brandywine Glbl Opp Fix Inc A15
0.13
3.89
15.71
12.30
15
0.42
4.41
17.54
11.67 11.87
0.54
3.88
8.64
7.13
8.14
1.27
3.22
12.38
7.30
8.04
Macquarie Global Income Opportunities Fd17
0.08
1.03
3.11
5.14
5.57
Mercer Global Credit Fund2
0.53
2.73
9.34
8.74
9.83
1.08
3.72
13.24
8.41
8.75
0.91
2.58
10.26
7.74
7.58
0.62
2.15
7.72
6.79
7.62
0.90
2.34
8.70
5.09
6.90
0.74
3.21
11.71
8.67
9.48
0.58
3.08
9.83
7.72
8.68
0.72
2.98
11.25
7.92
8.69
-0.50
0.71
11.71
8.67
9.48
-0.42
1.14
2.39
5.29
4.98
0.73
2.43
9.39
6.75
7.81
0.91
0.42
8.35
2.67
5.08
-0.57
1.46
3.41
n/a
n/a
Legg Mason Brandywine Global Fixed Inc A
Legg Mason WA Glb Multi Str Bd A
Macquarie Global Bond
13**
Mercer Global Sovereign Bond Fund
Nikko AM International Bond
16
16
Omega Global Corporate Bond
17
Omega Global Government Bond16
PIMCO EQT Wholesale Global Bond B
9
PIMCO EQT Wholesale Global Credit B
20
PIMCO EQT Whlsl Diversified Fxd Interest B
PIMCO EQT Whlsl Unconstrained Bond B
Putnam Worldwide Income Fund
17
17
SSgA Global Broad Invest Grade Fixed Inc
14
SSgA Global Fixed Income15
T.Rowe Price Dynamic Global Bond Fund
Templeton Global Bond Plus W
16
1
0.00
-0.56
0.90
3.88
6.13
7.44
4
0.37
2.69
9.55
8.42
8.90
UBS International Bond7
0.82
2.63
9.99
7.10
7.60
0.54
2.74
9.22
7.45
8.45
1.06
2.79
10.68
7.34
7.96
UBS Global Credit Fund
Vanguard International Crdt Secs Idx Hdg
Vanguard International Fxd Intr Idx Hdg
8
10
16
19
20
21
50% BB AusBond Composite Bond Index /50% BB
AusBond Bank Bill Index
60% Barclays Global Aggregate - Corporate Index in
$A (Hedged) and 40% Barclays Capital Global
Aggregate ex Government ex Treasuries Index ($AUD
hedged)
BarCap Gl Aggregate TR ($AUD hedged)
Barclays Capital Global Aggregate Bond Index ($AUD
Hedged)
Barclays Capital World Government Inflation-Linked
Bond Index ($AUD hedged)
Barclays Glb Agg Corp ($AUD hedged)
Barclays Global Aggregate 500 Index ($AUD hedged)
Barclays Global Aggregate Government-Related and
Corporate ($AUD hedged)
Barclays Global Aggregate Index ($AUD hedged)
Barclays Global Treasury Index ($AUD hedged)
Barclays Multiverse Index is the primary benchmark
Cash Index: AFMA 3-month bank bill swap rate BBSW
(Hurdle)
Citigroup (Customised Benchmark) M1 Global exAustralia hedged to Australian dollars Index
Citigroup World Broad Investment Grade ex-Australia
Index ($AUD hedged)
Citigroup World Government Bond Index ex Australia
($AUD hedged)
JP Morgan Global Government Bond Index ($AUD
hedged)
BB AusBond Australia Bank Bill Index
Credit Suisse Leverage Loan Index ($AUD hedged)
Consumer Price Index increases by at least 0.5%
BB AusBond Composite Bond Index
Merrill Lynch High Yield Cash Pay Constrained ($AUD
hedged)
*End of March 2015. Returns in AUD after
Fees. Underlined Funds can be applied for and
redeemed via the ASX mFund platform
22
WEEKLY REVIEW
13 Apr - 17 Apr 2015
Home Page
ASX CASH & BOND ETFs*
NAME
SYMBOL
CLOSE PRICE
1m (%)
1y (%)
MER (%)
FUND SIZE ($m)
AAA
BOND
GOVT
50.14
26.55
26.42
0.25
0.8
0.88
3.29
11.66
12.39
0.18
0.24
0.22
780.84
16.04
5.31
iShares Composite Bond ETF
iShares Treasury ETF
iShares Govt Inflation ETF
Russell Aust Select Corp Bond ETF**
IAF
IGB
ILB
RCB
108.1
108.28
118.34
20.50
0.75
0.81
0.66
0.50
10.94
12.05
17.25
14.86
0.24
0.26
0.26
0.28
205.61
17.01
33.60
80.15
Russell Aust Govt Bond ETF**
Russell Aust Semi-Govt Bond ETF**
Vanguard Aust Fxd Int Index ETF**
RGB
RSM
VAF
21.91
20.82
50.72
0.90
0.66
n/a
14.87
9.21
n/a
0.24
0.26
0.20
89.0
144.3
149.9
Vanguard Aust Govt Bond Index ETF**
VGB
49.86
n/a
n/a
0.20
40.5
BetaShares Aust High Int Cash
SPDR S&P/ASX Aust Bond
SPDR S&P/ASX Aust Govt Bond
*1m/1y performance as at end of March 2015. Closing price as at week end. Return in AUD before Fees
**As at April 20 neither Vanguard or Russell has updated their data for the end of March 2015
Disclaimer: YieldReport is independent of any product provider and receives no commissions or fees from any products described herein. The
information contained within this report is based on information that YieldReport Pty Ltd (ACN 163481678 Authorised Representative of TAG Asset
Consulting AFSL 230846) believes to be reliable however its accuracy and completeness cannot be guaranteed. This report contains general advice
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of and consider a Product Disclosure Statement ("PDS") or Prospectus for that product before making any decision. © YieldReport 2015.
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