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Yield Matters   

28 November, 2018

XTB Price Sheets

Five new floating-rate XTBs now on ASX

Interest in floating-rate bonds is skyrocketing
Last week we launched the eleventh PDS of XTBs on ASX. This PDS contained 5 new floating-rate XTBs, bringing the range of floaters to eleven. The new XTBs are: 
  • YTMF17: AMP BBSW + 1.35% 24 MAY '21
  • YTMF13: ANZ BBSW + 1.00% 07 MAR '22
  • YTMF14: BOQ BBSW + 1.02% 16 NOV '21
  • YTMF15: NAB BBSW + 0.80% 10 FEB '23
  • YTMF16: WESTPAC BBSW + 0.81% 27 OCT '22
Please call us on 1800 995 993 if you have any questions about these XTBs or how you can incorporate floating-rate XTBs within your client porfolios. 
VIEW XTB RANGE

Why buy a bond at a premium?

For those more interested in fixed-rate bonds this popular article addresses key considerations for investors focused on income

We are often asked by investors why they should pay above par for a bond. Why should they buy an XTB today for $110 when they know it will mature at $100?
Let’s say that you have decided to invest in a bond and have three to choose from:

  1. Bond A: Price $100.00 pays a coupon of 3.0%
  2. Bond B: Price $99.61 pays a coupon of 2.8%
  3. Bond C: Price $100.96 pays a coupon of 3.5%

All of the bonds mature in two years, in 2020. Which one would you choose? 

Instinctively, most investors would select either Bond A or Bond B, a bond trading at or below its par or Face Value. However, you may be surprised to discover that the Yield to Maturity for each of these bonds is the same - 3.0%. So, based on yield and coupons alone, how can an investor choose between these three bonds?

READ MORE

5 common myths about corporate bonds 

If you're introducing clients to bonds, this article may help address some of the most common misconceptions  

Guest blogger Alison Banney, dispels 5 of the most common myths about corporate bonds. "Let’s be honest. When it comes to your average investor, bond markets can seem intimidating and may be misunderstood. While corporate bonds don’t share the romantic aura that investing in the stock market may emanate, they’re still a strong defensive prospect and have a place in any portfolio."

READ MORE
Three Most Popular XTBs This Month*
  1. YTMF08 Bank of Queensland BBSW + 1.07% 06 NOV 2019
  2. YTMDX1 Dexus 4.75% 24 APR 2019
  3. YTMQF3 Qantas 7.75% 19 MAY 2022
* By number of XTB units purchased on ASX from 1 Nov to 27 Nov 2018

Upcoming XTB coupons

29 NOV: YTMDOW - Downer Group 5.75% 29 NOV 2018 - MATURING
03 DEC: YTMANZ - ANZ 3.25% 03 JUN 2020
07 DEC: YTMF13 - ANZ BBSW + 1.00% 07 MAR 2022 - NEW
08 DEC: YTMTCL - Transurban 4.75% 08 DEC 2021 
11 DEC: YTMQF2 - Qantas 7.750% 11 JUN 2021 

Keep up to date with XTB coupon dates on our website calendar, or follow us on Twitter or LinkedIn

 Recent bond transactions 

26 NOV: Agricultural Bank of China Sydney prices A$400 million three-year deal
26 NOV:  ME Bank launches new domestic AT1 deal 
26 NOV: ING Groep mandates potential Australian dollar deal
26 NOV: Metro Finance launches A$300 million ABS transaction
26 NOV: Bluestone launches Sapphire XX 2018-3 RMBS deal
23 NOV: Deal and ratings review, week ending 23 November 2018

KangaNews has an excellent summary of the latest bond transactions: View here

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 advisers@xtbs.com.au
Stay in touch by following us on the social platform of your choice
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 © 2018 Australian Corporate Bond Company, All rights reserved.


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