There was strong domestic corporate bond issuance before the US election, and I thought most Australian companies had satisfied their 2024 funding requirements, so that new issuance post the election would trail off. But contrary to expectations, there’s been solid ongoing supply.
I rarely show all of the kangaroo issuance (international companies issuing into the Australian market), so the long list below should be even longer.
- Aurizon Holding Limited has mandated a potential nine-year senior unsecured bond.
- Australian Gas Infrastructure Group priced a $95m 12-year senior unsecured floating rate note. The margin was set at 3mBBSW +160bps.
- Bendigo & Adelaide Bank priced a $750m five-year covered bond across two tranches: -$500m floating rate note at 3mBBSW +83bps
-$250m fixed an equivalent 4.958% coupon. - BNP Paribas issued a Tier 2 12NC7 fixed to floating and/or floating rate tranche
– A $400m fixed to floating rate trance priced at 3 month BBSW +200bps
– A $600m fixed rate tranche with a 6.198% coupon. - Goodman Australia Partnership has mandated a potential five-year senior unsecured fixed rate bond. Price guidance is 150bps over semi-quarterly swap.
- Pacific National has mandated 30NC5.25 fixed and/or floating rate subordinated notes. Price guidance is 195bps over semi-quarterly swap.
- Qube Holdings Limited has mandated a potential inaugural 7-year and/or 10-year senior unsecured bond.
- Rabobank priced a $1 billion three-and-a-half-year senior unsecured note across two tranches. A floating rate note and a fixed rate bond.
- Woolworths Group priced an $800m 10-year fixed rate senior unsecured note. The coupon was set at 5.91%.
Mitch Reznick from Federated Hermes talks through his team’s strategic changes to its portfolio this year.
We’ve updated our sample bond portfolios this month from Income Asset Management, and published this article describing the strategy behind two sample portfolios.
We welcome back Mark Bayley from Kapstream in our latest podcast where we consider financial markets post the US election and what he considers the ‘sweet spot’ in private credit.
Global inflation is slowing but is it slow enough to warrant further rate cuts? Harvey Bradley, from Insight Investment takes a look at global inflation including food prices and money supply. This is an insightful article.
Chris Iggo from AXA Investment Management thinks credit is attractive and income should beat inflation.
Finally, we have an article from Mawer which illustrates the impact that just a “little” high yield can have on the return of a credit portfolio.
Have a good week!
