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Yield Matters   

07 May 2019

XTB Price Sheets

Investment Grade Bonds: The Gold Standard
What it means and how ratings relate to risk

2019 has already seen some defaults from small, unrated bond issuers. Following this, we thought it would be wise to revisit credit ratings and how they are applied. Standard and Poor's recently published Annual Global Corporate Default And Rating Transition Study provides the latest update on global bond default, transition and recovery rates. The underlying bonds for all XTBs are currently investment grade.

READ MORE

Shaun Liddicoat, Financial Adviser, Cloud FP

Explains why he often uses XTBs rather than TDs or bond ETFs

With many members in SMSFs and the current the low interest rate environment, Cloud Financial adviser, Shaun Liddicoat found the returns on term deposits no longer satisfactory for his clients. It was the longer durations and higher yields from corporate bonds that led him to consider XTBs.  A product that he could easily purchase via client’s low cost online share trading platform. 

Moving from TDs to XTBs also relieved administrative pressure as most TD investments were 12 months or less, needing frequent decisions about reinvestment.

READ CASE STUDY

50 Years of Capital Markets

Meet XTB Co-Founder, John McNiven 

The rise of international capital markets has been astonishing, a driver of growth and development across the world but also a source of periodic crises. Euromoney has reported on market failures and resurgences, on great deals and disasters, and on pioneers and villains. As part of their 50th anniversary coverage they profile some of the biggest names in the capital markets, including XTB Co-Founder, John McNiven. 

MEET JOHN

Bonds all over the news

Bonds featured in a number of news stories over the past week

If you missed any of the bond and interest rate market coverage in the press over the last few weeks, here's some articles that sparked our interest:

Livewire: Bond Investors Conclude Retail is Alive and Well
Your Money: Will The RBA Cut Rates Before The Election?
AFR: Corporate Bond Butcher Awaits Yield Hogs
AFR: Mackay Sugar Noteholders Bitter as Bond Value Halves

Upcoming XTB coupons 

10 MAY: YTMF15 - NAB BBSW + 0.80% 10 FEB 2023
11 MAY: YTMDX2 - Dexus 4.25% 11 MAY 2027
13 MAY: YTMCCA - Coca Cola Amatil 4.25% 13 NOV 2019
13 MAY: YTMLL1 - Lend Lease 6.00% 13 MAY 2020
16 MAY: YTMF14 - BOQ BBSW + 1.02% 16 NOV 2021
19 MAY: YTMAWC - Alumina 6.75% 19 NOV 2019 
19 MAY: YTMQF3 - Qantas 7.75% 19 MAY 2022
20 MAY: YTMF05 - NAB BBSW + 0.85% 20 MAY 2019 - Maturing
20 MAY: YTMNAB 4.25% 20 MAY 2019 - Maturing
Keep up to date with XTB coupon dates on our website calendar, or follow us on Twitter or LinkedIn

ASX 30-Day Interbank Cash Rate Future Implied Yield Curve

As at market close 03 May 2019 (source ASX) 

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
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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.


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