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XTB Market Performance

Top Traded XTBs

Ranking 1 Month 3 Month 6 Month 9 Month 12 Month Since Launch
1 YTMAZJ YTMAZJ YTMAZJ YTMAZJ YTMAZJ YTMAZJ
2 YTMLL1 YTMLL1 YTMLL1 YTMLL1 YTMLL1 YTMLL1
3 YTMAWC YTMAWC YTMAWC YTMLLC YTMLLC YTMLLC
4 YTMQF2 YTMQF2 YTMLLC YTMAWC YTMAWC YTMWOW
5 YTMDO1 YTMDO1 YTMF09 YTMDO1 YTMWOW YTMAWC
Source: Australian Corporate Bond Company as at 30 April 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.

Market Performance Chart 1 May 15 - Mar 16-min

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.

Market Performance Chart 2 Dec 13 - Dec 15-min

Source: Bloomberg & Australian Corporate Bond Company Limited

Senior corporate bonds v equities & hybrids: from 2000

Market Performance Chart 3 Jan 00 - Jan 14-min

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.

Market Performance Chart 4 Floaters-min

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:

  1. 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.
  2. 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.

Total Returns 31 Jan - 31 Jan-min

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.