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Yield Matters   

1 October 2019

XTB Price Sheets

Lowe under increasing pressure to cut rates below 1%

It looks like a lonely road headed to the next rate cut

"Australia’s central bank chief Philip Lowe faces another year of shouldering the burden of economic stimulus as the government prioritizes a budget surplus over turning around the weakest expansion in a decade.

Just hours after Treasurer Josh Frydenberg announced commitment to returning the books to the black, data showed an unexpected climb in the jobless rate, signaling additional labor-market slack and bolstering the case for stimulus." 

READ MORE ON BLOOMBERG

What's the futures market telling us? 

Yesterday's ASX 30 Day Cash Rate Interbank Futures contract suggests a 78% chance of a cut at the RBA meeting this afternoon 

Living with a Bond Maturity Ladder Portfolio

Decision tree for investors with a ladder portfolio

The XTB Maturity Ladder portfolio has one XTB maturing each year. It is very popular among advisers and for good reason as it:

  • Delivers all the benefits of owning XTBs directly
  • Provides a regular and reliable cash flow
  • Is a buy and hold to maturity strategy providing flexibility for the investor when cash flows are paid
  • Has the characteristic of regularly maturing bonds which creates a different risk metric for portfolio construction. Many advisers and their clients find this feature attractive in a portfolio.

In implementing this strategy, advisers and their clients need to decide what to do with XTB proceeds as the underlying bonds mature. Do you take the money or re-invest?

READ ARTICLE

Let Us Help You Explain Bonds To Your Clients

How many of your clients don't understand the basics?

We recently presented to a room of retail investors in Melbourne. It was interesting to hear first-hand what they did and didn't understand about bonds. Very few realised that unlike dividends, bond coupons are legal obligations for the company and that maturity dates are fixed. They were also unaware that whilst bond ETFs and Managed Funds offer diversification, they loose one of the key values of fixed income - knowing your investment return BEFORE you invest.  

Talk to us about the range of educational materials you can share with your clients or how we can present on the mechanics of bonds to your clients.

CONTACT XTB

October XTB coupons

10 OCT: YTMF15 - NAB BBSW + 0.80% 10 FEB 2023
17 OCT: YTMF07 - ANZ BBSW + 0.82% 07 APR 2020
19 OCT: YTMTL2 - Telstra 4.00% 19 APR 2027
20 OCT: YTMAP1 - APA 3.75% 20 OCT 2023 
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

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 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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