The newest additions to FIIG’s USD DirectBond list are two investment grade (IG) rated corporate hybrids issued by BP Capital. These newly issued securities offer strong relative value.

Next Generation Clubs Australia (Next Gen, Company) recently provided a trading update. The update, which was in mid-June, coincided with the opening of some of its facilities. In Australia, all of its clubs have now reopened - Adelaide, Canberra, Perth and Sydney. However, Next Gen's clubs are currently operating in accordance with each state's social distancing guidelines (increased hygiene requirements in the near-term are expected to lead to higher operating costs). 

On 4 June 2020, Elanor Wildlife Park Fund (EWPF, Company) released its results for the period from 29 November 2019 (fund inception) to 31 March 2020. Results were considerably softer than forecasts as Featherdale Sydney Wildlife Park (Featherdale) and Mogo Wildlife Park (Mogo) were forced to close for extended periods of time due to severe Australian bushfires and measures to contain the spread of COVID-19.

On 4 June 2020, Elanor Wildlife Park Fund (EWPF, Company) released its results for the period from 29 November 2019 (fund inception) to 31 March 2020. Results were considerably softer than forecasts as Featherdale Sydney Wildlife Park (Featherdale) and Mogo Wildlife Park (Mogo) were forced to close for extended periods of time due to severe Australian bushfires and measures to contain the spread of COVID-19.

On 4 June 2020, Pioneer Credit placed its share in trading suspension, citing continued progress on the refinancing of its senior debt facilities, which are currently subject to a standstill agreement expiring in mid July.

On 2 June 2020, Deloitte, as administrator for Virgin Australia Holdings Limited (VAH), announced that it has shortlisted two parties in the current sale process that was initiated in late April (upon VAH entering voluntary administration). These two parties are Bain Capital and Cyrus Capital Partners. Given the very high profile nature of this process, there is significant media scrutiny and ongoing reporting, yet there remains limited reliable information available. As such, while we can only speculate on a number of matters being considered, we provide noteholders an update on where things stand.

The June 2020 update to our DirectBond List including new additions and our current Trading Restrictions list.

Lucas TCS recently provided its quarterly investor update for the period ended 31 March 2020.

On 2 June 2020, Deloitte, as administrator for Virgin Australia Holdings Limited (VAH), announced that it has shortlisted two parties in the current sale process that was initiated in late April (upon VAH entering voluntary administration). These two parties are Bain Capital and Cyrus Capital Partners.

The recent risk market rally reflects hope for a sharp recovery as economies slowly reopen. However, bond markets are once again diverging from equities and predicting a different future.

Next Generation Clubs Australia (Next Gen, Company) provided an update following recent Noteholder approval to, among other amendments and waivers, provide the Company with access to its Doncaster Escrow account. Despite some delays due to poor weather, construction at its Doncaster site continues.

In this note, we summarise the major bank financial results for the first six months of fiscal 2020 and take a closer look at the impact of COVID-19 on the outlook for bank provisions and capital, as some banks took the unprecedented step of deferring dividends.

On 13 May 2020, independent gas storage operator, Rockpoint, released its fourth quarter and full year (FY20) results for the period ended 31 March 2020. Overall, the results were poor with FY20 total realised revenues of USD93.5m, down 53% from the prior corresponding period (pcp).

Given the current situation and uncertainty around COVID-19, Lucas TCS provided an operational update further to the most recent update provided back in March.

On 29 April 2020, Peabody announced its results for the quarter ended 31 March 2020. Overall, the results were weak, 1Q20 revenues were USD846m, down from USD1.25bn in the prior corresponding period (pcp) reflecting the impact of lower volumes and challenged U.S. industry conditions, in conjunction with lower commodity prices, especially toward the end of the period. Peabody reported Adjusted EBITDA of USD36.8m, down approximately 85% from USD254.1m in the pcp.

On 29 April 2020, Ansett Aviation Training (AAT, Company) provided an operational update. The decision in late March 2020 by the Civil Aviation Safety Authority (CASA) to place a moratorium on mandated pilot training hours has led to a decline in AAT's monthly income by over 80%. Consequently, the Company has implemented a range of measures including, but not limited to, temporary reduction of staff hours and negotiating payment deferrals and discounts with suppliers.

Investors are having to adjust to the riskier nature of equity investing as more and more companies reduce, cancel or defer dividends. Those with a truly diversified portfolio should however be cushioned from this loss in income, thanks to the regular cashflow from a low risk bond portfolio.