As we kick-off the new financial year, it’s timely to look back at market conditions over the first half of 2019 and consider how best to adjust portfolios for the remainder of the year.

On 15 July 2019, AMP Limited announced that the transaction for the sale of its insurance operations was unlikely to proceed. Although the equity markets reacted negatively to this development, we view the recent capital implications as overall positive for creditors and remain comfortable with the credit profile of AMP.

ANZ has announced its intention to issue an AUD denominated, floating rate, 10-year non-call 5-year (10NC5) Tier 2 subordinated note.

Banking giant, Westpac, has launched a dual tranche USD-denominated Tier 2 subordinated note. This would be the first Tier 2 issuance since APRA’s announcement that Australia’s four major banks are required to significantly increase their Tier 2 capital over the next four years.

We provide updated recommendations on NEXTDC Limited's (NEXTDC, Company) fixed and floating rate notes. These changes are driven by movements in prices of the various notes, rather than as a result of changes to our view of the Company's creditworthiness.

Following the RBA’s back-to-back rate cuts at its June and July meetings, it’s time to settle into the fact that low interest rates are here to stay. With the official cash rate at a record low 1.00%, we look at strategies to optimise investor returns on fixed income portfolios.

Bank of Queensland Ltd (BOQ) is an ASX-listed regional bank that provides banking, financial services and insurance products, mainly to retail, SME and commercial clients.

Bank of Queensland Ltd (BOQ) is an ASX-listed regional bank that provides banking, financial services and insurance products, mainly to retail, SME and commercial clients.

Following completion of the sale of the Mossman mill, Mackay Sugar has scheduled the shareholders vote to 29 July 2019 which, if approved, will be the final step in the proposed recapitalisation of the company by Nordzucker. If this was to occur, we expect the notes to be redeemed no later than 30 August 2019.

Western Digital Corp.’s 2026 maturity USD bond is the latest addition to FIIG’s DirectBond list. Rated one notch below investment grade (IG), it offers an attractive risk-return for investors seeking USD credit exposure with yield in excess of 4.50%pa.

Western Digital Corporation (Western Digital, Company) is a leading developer, manufacturer and provider of data storage services and solutions.

We have downgraded our recommendation on Plenary Bond Co 6.50% notes due 2024 (Notes) due to recent price action and further yield compression. We believe the Notes now offer limited value compared to peers. Our credit outlook on the Notes remains Stable.

Given the recent price action, and further yield compression due to the relative proximity of the next call date and current trading price well above the call price, we have downgraded our recommendation on Merredin Energy's 7.50% notes due 2022 (Notes). Our credit outlook on the Notes remains Stable.

Deloitte, the voluntary administrator of Axsesstoday, provided an update on the current sale process. Deloitte has advised that they have entered into an exclusivity arrangement with an affiliate of Cerberus Capital Management, L.P. (Cerberus) to finalise terms on which Cerberus proposes to acquire all of the assets of AXL by way of a deed of company arrangement.

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

We provide an update to noteholders on the progression of ongoing discussions with Lucas following our credit update dated 24 May 2019. Our recommendation on Lucas’ notes due 2022 remains unchanged.

Auswide Bank Ltd. (ABA) is a small ASX-listed bank that provides retail banking services across Australia.

Fund managers have been rotating out of their equity allocations into cash and bonds, according to the BofA Merrill Lynch Global Fund Manager Survey results for June. This is largely due to a pessimistic outlook and is a timely reminder that portfolios should be well-diversified with an allocation to more defensive assets.