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%. More »