Yield Matters   

9 October, 2018

XTB Price Sheets

Q3 XTB Portfolio Performance 

Total returns up to 4.2% over 12 months, 4.9% since inception
XTB portfolios continue to perform well. Over the 12 month period to 30 Sep XTB portfolios provided higher returns than the most popular bond ETFs. 
Source Bloomberg & ACBC.

Poll Results: When Will the RBA Raise Rates?

The results are in. There is a clear difference of opinion between advisers and investors as to when the RBA will raise rates. Advisers tended to be aligned with the futures market estimate of Feb 2020 - 75% voted for no rise before 2020 at the earliest. However 45% of retail investors opted for next year and 83% were clustered to 2019 or 2020. How can you manage client expectations of the length of this lower rate environment?

Investment Grade Bonds

The importance of an Investment Grade Rating
Many financial advisers are limited to investing only in Investment Grade bonds. What makes a bond Investment Grade? How is the ranking determined and by whom? In this article we examine what Investment Grade means and what are the ramifications in regards to exposure to default risk. 
View S&P Global Corporate Default Study and Ratings Transitions

Balancing Risk and Return

A simple 2 minute video to share with your clients

Risk vs Reward is one of the most important concepts for investors to understand. In particular in these times of prolonged low rates where the search for yield can take investors into territories which are more risky than they may appreciate. This 2-minute video may help you to explain the concept to your clients. 

Four XTBs mature in November. If you have clients holding any of these XTBs it's time to start planning which XTB to invest in next. 

October XTB coupons

17 OCT: YTMF07 - ANZ BBSW + 0.82% 17 APR 2020
19 OCT: YTMTL2 - Telstra 4.00% 19 APR 2027 NEW
20 OCT: YTMAP1 - APT Pipelines 3.75% 20 OCT 2023
23 OCT: YTMF06 - Suncorp BBSW + 1.10% 23 APR 2019
23 OCT: YTMSCG - Scentre 5.00% 23 OCT 2019
26 OCT: YTMVC1 - Vicinity 4.00% 26 APR 2027 NEW
26 OCT: YTMVCX - Vicinity 3.50% 26 APR 2024 NEW
27 OCT: YTMQF1 - Qantas 6.50% 27 APR 2020
28 OCT: YTMAZJ - Aurizon 5.75% 28 OCT 2020

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

Latest bond transactions 

08 OCT: Pepper extends US dollar offering to I-Prime programme
08 OCT: BEN reveals plans for 3.25-year FRN deal
08 OCT: Kauri surge threatens annual volume record
05 OCT: BNP Paribas prices A$275 million tier-two EMTN deal
05 OCT: Deal and ratings review, week ending 5 October 2018
05 OCT: Metro Finance plans to meet domestic investors ahead of potential auto ABS

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
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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