Yield Matters   

23 October 2019

XTB Price Sheets

Storm clouds still loom large

With record low rates the outlook is not all sunny

There have been three rate cuts by the RBA bringing the official cash rate to an all-time low of 0.75%. Concern over the state of the Australian economy and global trade wars means dark clouds are still looming. In fact, ASX cash rate futures are implying the possibility of two more cuts over the next eight months.

As always, having a balanced portfolio with defensive assets is important. But, with new ‘fixed income’ instruments coming to the market promising higher returns, knowing what your investment is comprised of is crucial.


XTB Q3 Portfolio Performance 
Another strong quarter of performance for the XTB suite of portfolios

XTB portfolios continue to deliver. Performance reports to 30 September 2019 for each of the recommended XTB portfolios are now available.

When considering fixed rate bond securities, please note performance of fixed rate bonds has been positively impacted by recent interest rate cuts. Whilst there is an expectation of further interest rate cuts, as evidenced by the futures market pricing, if the interest rate cycle turns, it is likely that the performance of fixed rate bonds will be negatively impacted. Past performance is no guarantee of future performance.


More rates cuts ahead?

Yesterday's ASX 30 Day Cash Rate Interbank Futures contract suggests only a 19% chance of a cut at the RBA meeting in November 

YTMF08 matures next month

For holders of YTMF08 now's the time to consider a replacement

If your client is looking to maintain exposure to Bank of Queensland, we have an alternative XTB over a BOQ floating-rate bond - YTMF14 covers BOQ BBSW+1.07% 16 Nov 2021. Alternatively, contact us if you're interested in hearing about other replacement options.


Upcoming XTB coupons

26 OCT: YTMVC1 - Vicinity 4.00% 26 APR 2027 
26 OCT: YTMVCX - Vicinity 3.50% 26 APR 2024
27 OCT: YTMF16 - Westpac BBSW+0.81% 27 OCT 2022
27 OCT: YTMQF1 - Qantas 6.50% 27 APR 2020 
28 OCT: YTMAZJ - Aurizon 5.75% 28 JUL 2020
28 OCT: YTMF11 - Westpac BBSW+0.90% 28 JUL 2020
05 NOV: YTMAGL - AGL 5.00% 05 NOV 2021
05 NOV: YTMDX1 - Dexus 4.75% 05 NOV 2025
06 NOV: YTMF08 - BOQ BBSW+1.07% 06 NOV 2019 Maturing
Keep up to date with XTB coupon dates on our website calendar, or follow us on Twitter or LinkedIn

Contact us

If you have any questions on the content included in Yield Matters or need help with anything regarding XTBs, please contact us on 1800 995 993 or email
Stay in touch by following us on the social platform of your choice
Past performance is no guarantee of future performance. Returns may reflect the underlying bond performance adjusted for XTB fees. Please remember when considering any fixed rate bond securities, performance of fixed rate bonds has been positively impacted by recent interest rate cuts. Whilst there is an expectation of further interest rate cuts, as evidenced by the futures market pricing, if the interest rate cycle turns, it is likely that the performance of fixed rate bonds will be negatively impacted.

DISCLAIMER: Australian Corporate Bond Company Ltd (ABN 34 169 442 657, Authorised Representative No.: 469037) (“ACBC”) is an Authorised Representative of Theta Asset Management Ltd (ABN 37 071 807 684, AFSL No.: 230920) (“Theta”). Theta is the Responsible Entity of the Australian Corporate Bond Trust (ARSN 603 010 779) and the issuer of the Exchange Traded Bond Units (“XTBs”). ACBC is the Securities Manager of the XTBs. ACBC and Theta will earn fees for making the XTBs available to investors, which is payable at the time that an Authorised Participant applies for an XTB.
Email transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, delayed in transmission, incomplete, or may contain viruses.
ASX have approved the XTBs for quotation on ASX pursuant to the AQUA Rules. Further a Product Disclosure Statement (“PDS”) dated 6 May 2015 has been lodged with ASIC. Further Classes of XTBs may be made available pursuant to separate PDS, those Classes of XTBs will be made available once they have been approved for quotation by ASX and the relevant PDS has been lodged with ASIC. Investors should read the PDS that relates to that Class of XTB prior to making an investment decision, with or without the assistance of their professional legal, accounting and financial advisers.
The information contained in this email is confidential and may not be further disseminated to any person.  The information contained in this email is general in nature and does not take into account any particular investors personal circumstances, objectives or needs. It is not personal financial product advice. It is only made available to wholesale investors within the meaning of section 761G of the Corporations Act (2001).  
ACBC is solely responsible for the contents of this email. The contents of a PDS and this email are subject to change and ACBC makes no warranty, express or implied, as to the completeness of any statement contained herein nor does it represent that this email contains all of the information that an investor may require in order to assess the merits of an investment in XTBs.
The distribution of this email or any other material relating to XTBs, including a PDS, to persons outside of Australia may be restricted by law and any person who comes into possession of such documents should seek their own advice on, and observe any such restrictions.
Data in this email has been sourced from external parties believed to be reliable and has not been verified. Accordingly ACBC and Theta (and each of their directors, officers, consultants and employees) makes no warranty as to the accuracy or validity of any of the statistics quoted. To the extent permitted by law none of these parties are liable for any loss or damage arising from reliance on the content of this material. 

XTB® is a registered trade mark of Global Bond Exchange Pty Ltd, a related body corporate of Australian Corporate Bond Company Limited.

Copyright © 2019 Australian Corporate Bond Company, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.