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10.25% Average Yields for One Yead FX1 | Recap

 

Presented below is a summary of the 26 bond recommendations that we have made to our clients over the last 12 months, from June 2013 through May 2014. The yields shown below are when these securities were added to our FX1,FX2, and/or FX3 Fixed Income portfolios, and they average 9.81%.

Nineteen of these global corporate debt instruments were Yankee bonds (foreign corporation debt denominated in US dollars), with nine in other currencies, including Canadian dollars, Swedish krona, Brazilian real, and Russian rubles.

Each summary that follows lists the issuer, coupon rate, maturity, credit rating, the yields obtained at the time of acquisition, the portfolio (FX1, F2, or FX3) each was added to, as well as the business sector and a brief recap of the reason for its selection. Many of the companies hold prominent or even dominant positions within their respective countries. It is not uncommon, however, to find credit ratings that are constrained by a national sovereign credit rating.

  • 19 US dollar debt additions, averaging 10.25% yield, were made to FX1.
  • 26 mixed currency debt additions, averaging 9.81% yield, were made to FX2.
  • 7 foreign currency debt additions, averaging 8.61% yield, were made to FX3.

The bonds in the portfolios have an average outstanding maturity of under 40 months (3 years, 4 months) at an overall indicated average net yield of 9.81%.

8.67% Yield, EastComTrans Yankee Bond
Issuer: EastComTrans LLP
Coupon: 7.75%
Maturity: 4/22/18
Ratings: B3/-/B
Pays:  Semi-annually
Price: 97.0 (5/27/14)
Yield to Maturity: ~8.67%
Portfolios: FX1 and FX2
In 2013, EastComTrans increased its gross profit by almost 30%, its operating profit by over 32%, and its profit before tax by over 35%.
More about
EastComTrans.

10%Yield, Aeropuertos Argentina Yankee Bond
Issuer: Aeropuertos Argentina 2000
Coupon: 10.75%
Maturity: 12/1/2020
Ratings: CAA1/CCC+
Pays: Quarterly
Price: 101.75 (4/30/14)
Yield to Maturity: ~10.14%
Portfolios: FX1 and FX2
Airport Management (monopoly), Argentina
2012 Revenues in Argentine Pesos were up 66% and Net Income was up 46%. This is a sinking bond where ½ of the principal will have been returned by Oct 2017; therefore it has reduced risks and increased cash flow.
More about Aeropuertos Argentina: here and here.

7.5% Yield, Canwel Building Materials, in Canadian Dollars
Issuer: Canwel Building Materials Group
Stock Ticker: CWX.TO
Price: 2.77 (4/4/14)
Coupon: 5.85%
Maturity: 4/30/2017
Ratings: NA
Conversion price: 6.40 (any time prior at bondholder’s option)

Pays: Semi-annually
Price:  94.45 (4/9/14)
Yield to Maturity: ~7.94%
Portfolios: FX2 and FX3
In 2013, in spite of a cold Canadian winter that saw housing starts drop by 13%, Canwel increased its net earnings by 19.7%, increased its margin to 11.0%, and increased its operating earnings by 18%.
More about
Canwel.

10%Yield, AB InBev (Anheuser-Busch) in Brazilian Reals
Issuer: AmBev/Anheuser-Busch Inbev SA/NV
Coupon: 9.5%
Maturity: 7/24/2017
Ratings: A2/A
Pays: Semi-annually
Price: 97.0 (4/16/14)
Yield to Maturity: ~10.6%
Portfolios: FX2 and FX3
Total revenue in the first quarter of 2014 grew by 8.9% over the year-ago quarter. Total volume and revenue per unit volume both grew by 4.4%.
More about AB InBev.

12% Yield, MNC Investama Yankee Bond
Issuer:  Ottawa Holdings Pte. Ltd/PT Bhakti Investama Tbk
Coupon: 5.875%
Maturity: 5/16/2018
Ratings: B2/BB-
Pays:  Semi-annually
Price:  80.25 (3/24/14)
Yield to Maturity: ~12.08%
Portfolios: FX1 and FX2
MNC Investama’s grew EBITDA by 12% in 1Q2014 over the comparable year-ago quarter. The company’s subsidiaries contributed higher revenues, EBITDA and net income compared to the same period a year ago.
More about
MNC Investama

10.75% Yield, Rolta Yankee Bond
Issuer: Rolta LLC
Coupon: 10.75%
Ratings: -BB
Maturity:5/16/2018
Pays: Semi-annually
Price:  100.0 (2/19/14)
Yield to Maturity: ~10.74%
Portfolios: FX1 and FX2
Rolta reports that its latest  nine months’ consolidated revenue grew by 59.7%, and its net profit by 37.2%, over FY2014. In addition, the company received the patents it had applied for in the US for certain unique technologies and processes embedded in Rolta’s offering for cloud security, enterprise integration, and IT integration solutions.
More about
Rolta.

8.25% Yield, HudBay Yankee Bond
Issuer: HudBay Minerals
Coupon: 9.5
Maturity: 10/1/2020
Rating: B3/B-
Pays:  Semi-annually
Price: 104.8 (2/13/14)
Yield to Maturity: ~8.22%
Portfolios: FX1 and FX2
HudBay’s Lalor (Manitoba) mine achieved commercial production ahead of guidance and under budget; its Constancia (Peru) project is on track for first production in late 2014 and commercial production in Q2 2015; and its Reed (Manitoba) mine was completed under budget and operated at 792 tonnes per day in the first quarter.
More about
HudBay.

8.8% Yield, Avangardco Yankee Bond
Issuer: AvangardCo
Coupon: 10.0%
Maturity: 10/29/2015
Ratings: B- (Fitch)
Pays: Semi-annually
Price:  101.9 (1/14/14)
Yield to Maturity: ~8.81%
Portfolios: FX1 and FX2
In the first quarter of 2014, revenue in the company’s main business segments (shell eggs and dry egg products) increased by 7% year-on-year as a result of doubling of the production and sales of dry egg products. However, consolidated revenue declined by 2%year–on-year due to the impact of the Ukrainian hryvnia devaluation against the US dollar. Export revenue continued to grow and accounted for 40% of total revenue, reaching US$ 62 mln.
More about Avangardco.

6.5%-9% Yield, Temple Hotels, in Canadian Dollars
Issuer: Temple Hotels
Ticker: TPH.TO
Toronto: $5.73 1/16/2014
Debenture (Bond): TPH.DB.C
Coupon: 8.0%
Maturity: 12/31/2016
Conversion Price: $ 5.82
Rating: none
Pays: Semi-annually
Price:  104.0 (12/31/13)
Yield to Maturity: ~6.5%
Portfolios: FX2 and FX3
Operating income increased by $380,000 or 3% during the first quarter of 2014. Cash flow from operating activities increased by $2.1 million during the same period.
More about
Temple Hotels.

9.66% Yield, Dana Gas Yankee Sukuk
Issuer: Dana Gas
Coupon: 9.0
Maturity: 10/31/2017
Rating: NA
Pays:  Quarterly
Price: 97.875 (12/11/13)
Yield to Maturity: ~9.66%
Portfolios: FX1 and FX2
First-quarter operating profits rose 67 per cent to $45 million (Dh164 million) against $27 million (Dh98 million) in Q1 2013. Production for Q1 2014 increased by 12 per cent
More about
Dana Gas.

8.45% Yield, Camposol Yankee Bond
Issuer: Camposol S.A.
Coupon: 9.875%
Ratings: B
Maturity: 02/02/2017
Pays: Semi-Annual
Price:  103.9 (11/12/13)
Yield to Maturity: ~8.45%
Portfolios: FX1 and FX2
Q1 2014 revenue was up 49%, and EBITDA up 83.9%, over the same quarter in 2013.
More about
Camposol.

14.38% Yield, Brigus Gold Yankee Bond
Issuer: Brigus Gold
Ticker: BRD
NYSE: $0.74 10/24/2013
Debenture (Bond):
Coupon: 6.5%
Maturity: 3/31/2016
Conversion Price: $ 2.45
Rating: none
Pays: Semi-annually
Price:  84.5 (11/7/13)
Yield to Maturity: ~14.42%
Portfolios: FX1 and FX2
On February 27th, 2014, Primero Mining Company and Brigus Gold announced that Primero would acquire Brigus. Brigus (now Primero) bonds are now trading at a premium.
More about Brigus:
here and here.

10% Yield, Transportadora De Gas Del Sur Yankee Bond
Issuer: Transportadora de Gas del Sur S.A
Coupon: 7.875%
Maturity: 5/14/2017 (laddered redemption, 25 month average)
Ratings: B3/B-
Pays: Semi-annually
Price: 96.25 (10/29/13)
Average Life Yield: ~11.18%
Portfolios: FX1 and FX2
For the quarter ended March 31, 2014, TGS posted total net revenues of
1,240.1 million Argentine pesos, compared to 825.7 million Argentine pesos recorded in the same period of 2013. Cash flow from operating activities increased over the year-ago quarter from 288.2 million Argentine pesos to 491.6 million Argentine pesos, an increase of over 70%.
More about Transportadora De Gas Del Sur

7% Yield, Diamorph, in Swedish Krona
Issuer: Diamorph
Coupon: 12.00%
Maturity: 7/6/2017
Ratings: B
Pays: Semi-annually
Price:  110.55 (10/23/13)
Yield to Worst Call (107.5 in 2014): ~6.96%
Yield to Maturity: ~8.6%
Portfolios: FX2 and FX3
Year-over-year sales for the first quarter of 2014 were up 4.2% over 2013, and operating income was up 12.0%
More about
Diamorph.

10.76% Yield, Mriya Agro Yankee Bond
Issuer: Mriya Agro Holding Co.
Coupon: 10.95%
Maturity: 03/30/2016
Ratings: B/B-
Pays: Semi-Annually
Price:  100.40 (10/4/13)
Yield to Maturity: ~10.76%
Portfolios: FX1 and FX2
In its most recent annual financial report (2013), Mriya showed an increase of 43.3% in revenues from operations, and an increase of 17% in total revenues. The company also increased the amount of land under cultivation, and increased its agricultural yield.
More about
Mriya Agro.

8.25% Yield, Gajah Tunggal Yankee Bond
Issuer: PT Gajah Tunggal
Coupon: 7.75%
Maturity: 02/06/2018
Ratings: B2/B+
Pays: Semi-Annual
Price:  98.185 (9/26/13)
Yield to Maturity: ~8.25%
Portfolios: FX1 and FX2
Gajah Tunggal’s net sales increased by 5.3% in the first quarter of 2014 from the first quarter of 2013 . Export sales grew by 29.6% over the corresponding period in 2013, thanks to a recovery in sales to the US and Europe.
More about
Gajah Tunggal.

10% Yield, Trade & Development Bank of Mongolia Yankee Bond
Issuer: Trade & Development Bank of Mongolia
Coupon: 8.5%
Maturity: 10/15/2015
Ratings: B1
Pays: Semi-annually
Price:  97.35 (9/20/13)
Yield to Maturity: ~10%
Portfolios: FX1 and FX2
Trade and Development Bank of Mongolia’s operating income, more than doubled, increasing by 102.5% from 2012 to 2013. Net profit did even better, increasing by 120%.
More about
Trade & Development Bank of Mongolia.

9.85% Yield, Alto Palermo Yankee Bond
Issuer: Alto Palermo
Coupon: 7.875
Ratings: -/B+/B+
Maturity: 5/11/2017
Pays: Semi-annually
Price:  94.0 (9/18/13)
Yield to Maturity: ~9.87%
Portfolios: FX1 and FX2
From 2012 to 2013, sales were down by 0.7%, and operating income was down by 3.1%.
More about
Alto Palermo.

9.6% Yield, Ferrexpo Yankee Bond
Issuer: Ferrexpo
Coupon: 7.875
Maturity: 4/07/2016
Ratings: B+/B2/B
Pays: Semi-annually
Price:  95.95 (8/23/13)
Yield to Maturity: ~9.66%
Portfolios: FX1 and FX2
In fiscal year 2013, Ferrexpo’s were up 11%, before-tax profit was up 15%, and cash flow from operating activities was up 96%.
More about Ferrexpo.

8.4% Yield, NordGold Yankee Bond
Issuer: NordGold
Coupon: 6.375%
Maturity: 5/07/2018
Rating: Ba3
Pays: Semi-annually
Price:  92.25 (8/16/13)
Yield to Maturity: ~8.4%
Portfolios: FX1 and FX2
First-quarter 2014 revenues declined to US$274.9 million from US$296.8 million, due mostly to a decline in the average realized price of gold over the period. In spite of this decline, EBITDA increase by 6% year-on-year, due to higher production and strict cost control, and net income rose by 68% (US$24.6 million in Q1 2014, compared to US$14.6 million in Q1 2013).
More about
NordGold.

11.22% Yield, Aeropuertos Argentina  Yankee Bond
Issuer: Aeropuertos Argentina 2000
Coupon: 10.75%
Maturity: 12/1/2020
Ratings: B1/B-
Pays: Quarterly
Price: 98.5 (8/6/13)
Yield to Maturity: ~11.22%
Portfolios: FX1 and FX2
Airport Management (monopoly), Argentina
2012 Revenues in Argentine Pesos were up 66% and Net Income was up 46%. This is a sinking bond where ½ of the principal will have been returned by Oct 2017, therefore it has reduced risks and increased cash flow.
More about Aeropuertos Argentina:
here and here.

8.9% Yield, Berau Coal Yankee Bond
Issuer: Berau Coal Energy
Coupon: 7.50%
Maturity: 03/13/2017
Ratings: B1/BB-
Pays: Semi-Annual
Price:  95.0 (7/26/13)
Yield to Maturity: ~8.89%
Portfolios: FX1 and FX2
Pre-tax profit increased from US$7.8 million in 2012 to $56.6 million in 2013. Net cash flow from operating activities increased from US$16.5 million to $63.5 million over the same period.
More about
Berau Coal.

8.5% Yield, Federal Grid Company, in Russian Rubles
Issuer: Federal Grid Company
Coupon: 8.446%
Maturity: 3/13/2019
Ratings: Baa3/BBB
Pays: Semi-annual
Price: 99.75 (7/16/13)
Yield to Maturity: ~8.5%
Portfolios: FX2 and FX3
Federal Grid Company’s revenue for Q1 2014 increased by 11% year-on year, while EBITDA increased by 13% over the same period.
More about
Federal Grid Company.

10% Yield, TransGlobe Energy, in Canadian Dollars
Issuer: TransGlobe Energy
Coupon: 6.00%
Ratings: NA
Maturity: 3/31/2017
Pays: Semi-annually
Price:  88.1 (6/28/13)
Yield to Maturity: ~9.87%
Portfolios: FX2 and FX3
The company’s oil sales were up 41% in 2013 over their 2012 levels. Cash flow from operating activities was up 48%. Cash and cash equivalents rose by 89%.
More about
TransGlobe Energy.

10% Yield, Coelba, in Brazilian Reals
Issuer: Companhia de Eletricidade do Estado do Bahia (COELBA)
Coupon: 11.75
Maturity: 4/27/2016
Rating: Baa2/BBB-
Pays:  Semi-annual
Price: 104.5 (6/19/13)
Yield to Maturity: ~9.88%
Portfolios: FX2 and FX3
During 2013, revenue decreased by 14%, while cash flow from operating activities declined by 6.5%. At the end of 2013, cash and cash equivalents stood at BRL 573.5 million.
More about Coelba.

11% Yield, Transportadora De Gas Del Sur Yankee Bond
Issuer: Transportadora de Gas del Sur S.A
Coupon: 7.875%
Maturity: 5/14/2017 (laddered redemption, 25 month average)
Ratings: B3/B-
Pays: Semi-annually
Price: 88.4 (6/3/13)
Average Life Yield: ~15.38%
Portfolios: FX1 and FX2
For the quarter ended March 31, 2014, TGS posted total net revenues of
1,240.1 million Argentine pesos, compared to 825.7 million Argentine pesos recorded in the same period of 2013. Cash flow from operating activities increased over the year-ago quarter from 288.2 million Argentine pesos to 491.6 million Argentine pesos, an increase of over 70%.
More about Transportadora De Gas Del Sur

To know more about these Portfolio’s call our fixed income specialist at 971-327-8847

On a scale of A+ to F

Durig.com | Bond-Yields.com

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Information on this website is provided for informational purposes only and is not offered as advice with respect to any particular security or related financial instrument. This information should not be used as a basis for making an investment decision and must not be treated as a substitute for seeking advice from a licensed professional. The suitability of a given investment for a particular investor depends on a number of factors, each of which should be considered carefully. Such factors include, but are not limited to, the risk associated with the investment, the nature of current market conditions, and the investor’s objectives, personal needs, and specific circumstances. This is neither a solicitation to buy nor an offer to sell to persons in Texas.

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