AAA rated senior tranches of Residential Mortgage Backed Securities (RMBS) provide superior return when compared to equivalent rated bonds and have the added benefit of natural risk reduction through amortisation.

This opportunity will appeal to clients who are comfortable with the credit quality of Liberty Financial as an issuer but are looking for yield and ratings upside.

Axsesstoday announced on 8 April 2017 that it had appointed Deloitte as voluntary administrator of the company. Although disappointing, this outcome is not unexpected in light of the lack of progress in resolving the breaches. We expect the administrator to start communicating with all creditors, including holders of the Junior Secured Notes, within the next fortnight.

On 7 March, the trustee of Axsesstoday's Series II Notes and Subordinated Notes notified noteholders that the Company continues to be in breach of its obligations. As part of the notice, the trustee is calling a meeting of noteholders, to be held on 17 April 2019.

The April 2019 update to our DirectBond List including new additions and our current Trading Restrictions list.

As uncertainty over the economic future grows, we look at longer dated investment grade bonds, which can protect portfolios in a downturn. We also track the strong performance of these bonds since we last discussed this strategy.

Established in 1984, the Geo Group Inc. (GEO, Group) is a real estate investment trust (REIT) specialising in the ownership, leasing and management of correctional, detention and re-entry facilities. It also offers offender transportation services to government customers in the United States and internationally. Listed on the New York stock exchange, GEO currently has a market capitalisation of USD2.2bn.

Peet Ltd (Peet, Company), founded in 1895 and listed on the ASX in 2004, is one of Australia’s largest pure-play listed residential land developers.

Covenants and security, here to protect noteholders.

Woolworths has announced its intention to issue a potential inaugural AUD Green bond. Woolworths operates over 3,000 retail stores in Australia and New Zealand, including more than 1,000 supermarkets. It also operates BWS and Dan Murphy’s liquor stores as well as the Big W retail chain.

Insurance Australia Group Limited (IAG, Group) is the parent company of Australia’s largest general insurance group with controlled operations across Australia and New Zealand. It also maintains a minority interest in operations in Malaysia and India. The group provides personal and commercial insurance products through leading brands in both Australia (NRMA, CGU, RACV and SGIC, among others) and New Zealand. IAG is an ASX Top 30 company with a market capitalisation over AUD18.0bn. The Group’s annual gross written premiums are close to AUD12bn.

Downer Group Finance Pty Limited (Downer) has mandated Mizuho Securities, NAB and Westpac to organise investor meetings ahead of a new AUD denominated transaction. The bond will be issued by Downer and guaranteed by Downer EDI, the main operating entity.

Insurance Australia Group Limited (IAG, Group) is the parent company of Australia’s largest general insurance group with controlled operations across Australia and New Zealand. It also maintains a minority interest in operations in Malaysia and India. The group provides personal and commercial insurance products through leading brands in both Australia (NRMA, CGU, RACV and SGIC, among others) and New Zealand. IAG is an ASX Top 30 company with a market capitalisation over AUD18.0bn. The Group’s annual gross written premiums are close to AUD12bn.

StockCo recently provided noteholders with an update on their 1H19 performance. Livestock receivables were AUD144m in 1H19, down around 15% in the half, while income was around 10% lower. The slowdown was expected, and is a result of prolonged drought conditions. Credit losses remain very low. We forecast StockCo’s financial performance in FY19 to remain subdued, although we expect the credit profile to remain sound, overall.

One of Australia’s largest pure-play listed residential land developer, Peet Limited (Peet), has launched its first bond not to be listed on the ASX.

Insurance Australia Group (IAG) has launched a new Tier 2 subordinated note with a 2025 call. It is expected to price wider than its November 2018 Tier 2 issuance, with indicative pricing at 3mBBSW+[2.40% to 2.45%], offering an attractive floating rate exposure.

Privium Group (formerly Impact Group) reported its 1H19 results which were generally in-line with our expectations. Total 1H19 revenue was AUD140.1m (compared to our forecast of AUD136.0m) and EBITDA was AUD8.7m (compared to AUD8.8m). We have revised down our FY19 EBITDA forecast from AUD17.6m to AUD16.2m given lower sales volume being achieved, noting the Group’s credit profile regardless remains sound.

The recent price performance of Rackspace Hosting Inc’s (RAX) 2024 bond has concerned investors about the viability of the company. We think the bond is behaving exactly the way a high yield bond is expected to behave.