Presented below is a summary of the 30 bond reviews and recommendations that we have given to our clients over the past twelve months, from the end of October, 2013 through the start of November, 2014. Twenty three of these global corporate debt instruments were Yankee Bonds (foreign corporation debt denominated in US dollars), and seven were issued in other currencies, including, Canadian dollars, Australian dollars, Brazilian reals, and British Pound Sterling.
Each summary that follows lists the issuer, coupon rate, maturity, credit rating, the yields at the time of acquisition, the portfolio (FX1, FX2, or FX3) each was added to, as well as a brief update of the issuer. Many of the companies hold dominant positions within their respective countries. It is not uncommon, however, to find credit ratings that are constrained by a national sovereign credit rating.
· 23 US dollar debt additions, with average indications of 9.84%*, made to FX1.
· 30 mixed currency debt additions, averaging 9.63%*, were made to FX2.
· 7 foreign currency debt additions, averaging 8.96%*, were made to FX3.
The bonds in the portfolios have an average outstanding maturity of just over 41 months (3 years, 5 months) and the yields shown below reflect when these securities were added to our FX1, FX2, and FX3 Fixed Income Portfolios. The overall average yield indications at the time of recommendation for addition to the portfolios is about 9.63%*.
10% Yield, Cimento Tupi Yankee Bond