Top Traded XTBs
| Ranking | 1 Month | 3 Month | 6 Month | 9 Month | 12 Month | Since Launch |
| 1 | YTMAZJ | YTMAZJ | YTMAZJ | YTMAZJ | YTMAZJ | YTMAZJ |
| 2 | YTMF06 | YTMLL1 | YTMLL1 | YTMLL1 | YTMLL1 | YTMLL1 |
| 3 | YTMLL1 | YTMF06 | YTMAWC | YTMAWC | YTMLLC | YTMLLC |
| 4 | YTMDO1 | YTMDO1 | YTMQF2 | YTMLLC | YTMAWC | YTMWOW |
| 5 | YTMQF3 | YTMQF2 | YTMQF06 | YTMF09 | YTMF06 | YTMF06 |
Source: Australian Corporate Bond Company as at 30 June 2017
XTBs were first available on ASX on 14 May 2015. The market performance of both XTBs and their underlying corporate bonds has demonstrated the capital stability of senior corporate bonds.
XTBs over senior corporate bonds vs equities & hybrids: from May 2015
The chart below shows mark-to-market total returns from senior corporate bonds (XTBs on ASX) v. equities and hybrids since XTBs were made available on ASX in May 2015.
Note: This performance is after the XTB fee has been deducted.
Source: Bloomberg & Australian Corporate Bond Company Limited
XTBs over senior corporate bonds v equities & hybrids: from Dec 2013
The chart below has similar data going back two years. The XTB data is extrapolated from May 2015 based on the underlying bond price plus the XTB fee.
Note: the smaller population of Hybrids and XTBs at the start of this analysis as some securities were only issued in the last two years.
Source: Bloomberg & Australian Corporate Bond Company Limited
Senior corporate bonds v equities & hybrids: from 2000
Source: Bloomberg, Elstree Investments & Australian Corporate Bond Company Limited
Floating Rate Note Index
The chart below shows the total returns from the senior floating rate note index. The dislocation in 2008 was the credit crisis part of the GFC. Otherwise, senior floating rate bonds are among the most capital stable securities in Australia.
Source: Bloomberg
Total Returns
ACBC views the XTB range of senior bond securities as a “buy and hold” to maturity investment for individual investors. For investors who adopt this approach, their return will be the Yield to Maturity they bought their XTB at.
But, investors may also want to sell before maturity. For these investors, the price they sell at is important, as together with the income they receive from coupons, this will determine their “total return”.
The chart and table below show Total Returns from XTBs (after the XTB fee) for the year to 31 Jan 2016, as if you bought on 31 Jan 2015 and sold a year later.
While all XTBs are in positive territory, there are some different performances
- Qantas was upgraded by the Credit Ratings Agencies which caused the bond price to increase significantly. This resulted in strong total returns.
- BHP and Woolworths were downgraded by the Credit Ratings Agencies so their bond prices fell. This resulted in low total returns (although still positive).
Important points:
- This period saw many equities and hybrids delivering significant negative total returns. However the XTBs on the bonds all had positive returns.
This demonstrates the capital stable and defensive character of senior corporate bonds relative to equities and hybrids. - If you buy and hold until maturity, then it doesn’t matter what the market price of the XTB is over time. Whether it is a gain like Qantas or a loss like BHP or Woolworths. You will get the applicable yield for the price you bought the XTB at. Assuming the Bond Issuer does not go into default.
Source: Bloomberg & Australian Corporate Bond Company Limited
Fixed Rate XTBs
| Bond Issuer | XTB Code | Total Returns | Bond Issuer | XTB Code | Total Returns |
| APA Group | YTMAPA | 3.8% | Mirvac | YTMMG1 | 3.2% |
| Aurizon | YTMAZJ | 1.6% | NAB | YTMNAB | 2.8% |
| Bank of Queensland | YTMBOQ | 2.8% | Qantas | YTMQF1 | 9.2% |
| BHP | YTMBHP | 1.1% | Qantas | YTMQF2 | 8.7% |
| Caltex | YTMCTX | 3.4% | Qantas | YTMQF3 | 9.2% |
| Coca Cola Amatil | YTMCCA | 2.4% | Scentre Group | YTMSCG | 2.6% |
| Crown | YTMCWN | 3.1% | Stockland | YTMSGP | 3.1% |
| Dexus | YTMDXS | 3.5% | Stockland | YTMSG1 | 3.4% |
| GPT | YTMGPT | 3.1% | Sydney Airports | YTMSYD | 3.8% |
| Incitec Pivot | YTMIPL | 3.5% | Telstra | YTMTLS | 2.0% |
| Lend Lease | YTMLLC | 2.2% | Wesfarmers | YTMWES | 2.1% |
| Lend Lease | YTMLL1 | 1.9% | Wesfarmers | YTMWE1 | 2.3% |
| Mirvac | YTMMGR | 2.7% | Woolworths | YTMWOW | 0.5% |
Floating Rate XTBs
| Bond Issuer | XTB Code | Total Returns | Bond Issuer | XTB Code | Total Returns |
| AMP | YTMF01 | 2.6% | NAB | YTMF04 | 2.5% |
| Bank of Queensland | YTMF02 | 2.8% | NAB | YTMF05 | 2.4% |
| Bank of Queensland | YTMF03 | 2.6% | Suncorp | YTMF06 | 2.5% |
Total Returns 31 Jan 15 to 31 Jan 16
The XTB data has been extrapolated based on the underlying bond price and the Securities Manager’s Margin (fees).
The XTB data is based on a universe of XTBs over fixed rate bonds. The first XTBs were quoted on ASX on 14 May 2015.
*At the end of the analysis there are 26 XTBs that make up the XTB index. Past performance is not a guarantee of future performance.
*At the start of the analysis there were 22 listed hybrids, at the end of the analysis there were 33 hybrids.
You should not make an investment decision based on these charts alone, you should consider the relevant Product Disclosure Statement, with or without the assistance of your professional advisers.