9.9% average yield for FX1 | 6 month recap| Fixed-Income1.com

Presented below is a summary of the 15 bonds that we have researched, recommended in reviews sent to our clients, and then published on Bond-Yields.com for the last 6 months.

In the last half year, the yields indicated when these securities were initially added to our FX1, FX2, and/or FX3 Fixed Income portfolios have averaged 9.68%.  Thirteen of these global corporate debt instruments were Yankee bonds (foreign corporation debt denominated in US dollars), one was in Swedish krona, and one was in Canadian dollars.  Each paragraph details the coupon rate, maturity, CUSIP, credit rating, and the yields obtained at the time of acquisition for the FX1, FX2, or FX3 portfolios, as well as giving the business sector and a brief recap of the reason for its selection.  Many of the companies hold prominent, dominant, or even monopolistic positioning within their respective countries, and it is not uncommon to find credit ratings that are constrained by a national sovereign credit rating.  The following breakdown indicates which portfolio each issue was added to:

14 US dollar notes, averaging 9.9% yield, were added to FX1

16 mixed currency notes (87.5% were USD), averaging 9.68% yield, were added to FX2

2 foreign currency notes, averaging 8.1% yield, were added to FX3

(View the FX1, FX2 & FX3 Portfolio’s here.)

 

When initially added to the FX2 portfolio, the 16 bonds had an average outstanding maturity of about 3.48 years at the average net yield indication of 9.68%.  These bonds currently have an average remaining life of about 3.06 years, but this has been skewed shorter due to the anticipated emanate redemption of the 2016 Brigus Gold (BRD) bonds at par.  This early redemption will also increase the realized yield of the portfolio, but we are only stating here the yields that were anticipated at the time of purchase of the bonds.  Aside from Brigus notes, the remaining 15 bonds added to the FX2 portfolio currently have an average of about 3.26 years remaining.

 

10.75% Yields With Rolta Yankee Bonds

Issuer: Rolta LLC (RTI:LSE)

Coupon: 10.75

Maturity: 5/16/2018

CUSIP: U77587AA8

Pays:  Semi-annually

Rating: BB-

Price: 100.0 (2/18/14)

Yield to Maturity: ~10.75

Portfolios: FX1 and FX2

Intellectual Technology, India Rolta’s Q2-FY-14 Consolidated Revenue Grew 20.9% and Net Profit rose 6.2% Q-o-Q.  We think this trend will continue and provide more than adequate interest coverage for these bonds.

More Rolta bond information: 10.75% Rolta LLC

 

8.23% Yields With 6¾ Year HudBay Yankee Bonds

Issuer: HudBay Minerals (HBM)

Coupon: 9.5

Maturity: 10/1/2020

CUSIP: 443628AB8

Pays:  Semi-annually

Rating: B3/B-

Price: 104.8 (2/13/14)

Yield to Maturity: ~8.53%

Yield to Worst: ~8.23% (2018)

Portfolios: FX1 and FX2

Diversified Miner, Canada

We think this very seasoned mining company and its experienced management team have successfully designed and implemented a lower risk growth strategy, and believe that it will have little difficulty performing on this debt.

More HudBay Minerals bond information: 8.25% HudBay Minerals

8.81% Yields With 1¾ Year AvangardCo Yankee Bonds

Issuer: AvangardCo IPL (OTCAGVDY)

Coupon: 10.0%

Maturity: 10/29/2015

Ratings: B- (Fitch)

CUSIP: M15537AA7

Price:  101.9 (1/14/14)

Yield to Maturity: ~8.81% Portfolios: FX1 and FX2

Agriculture, Ukraine

As a leading global provider of eggs and egg products from one of Europe’s richest farming districts, we think AvangardCo is positioned as a key player within a vital industry.  The Company’s facilities are among the most technologically advanced in the Ukraine, and its revenues and net profit have increased significantly in recent years. More AvangardCo bond information: 8.8% AvangardCo

9.27% Yields With 3¾  Year Temple Hotel Canadian Dollar Convertibles

Issuer: Temple Hotels (OTC:TMPHF)

Coupon: 7.25

Maturity: 9/30/2017

CUSIP: 879854AC1

Pays:  Semi-annually

Rating: none

Price: 93.65 (12/17/13)

Yield to Maturity: ~9.27%

Portfolios: FX2 and FX3

Hospitality Industry, Canada

We see this company as having established itself as a successful niche player at a critical time in the hospitality industry, and is well poised for continued future growth.

More Temple Hotels debenture information: 9.25% Temple Hotels

9.66% Yields With 3.9 Year Dana Gas Sukuks

Issuer: DanaGas (DANA:UH)

Coupon: 9.0

Maturity: 10/31/2017

CUSIP: G273E2AB2

Pays:  Quarterly

Rating: NA

Price: 97.875 (12/11/13)

Yield to Maturity: ~9.66%

Portfolios: FX1 and FX2

Oil & Gas Producer, Middle East

As the Middle East’s first and leading private-sector regional natural gas company, Dana Gas has proven plus probable reserves of 152 million barrels of oil equivalent and a resource potential of some 900 million barrels from its world class acreage in Egypt and Iraq.

More DanaGas sukuk information: 9.66% Dana Gas

8.45% Yields With 3.2 Year Camposol S.A. Yankee Bonds

Issuer: Camposol S.A. (OTC:CMPHF)

Coupon: 9.875%

Maturity: 02/02/2017

CUSIP: G273E2AB2

Pays: Semi-Annual

Ratings: B

Price:  103.9 (11/7/13)

Yield to Maturity: ~8.45% Portfolios: FX1 and FX2

Agriculture, Peru

Camposol is presently the largest exporter of asparagus in the world and is heading towards becoming the largest producer of avocados on the planet.  The company has also planted 531 hectares of sweet pepper, 451 hectares of grapes, 415 hectares of mangos and 101 hectares of mandarin oranges.

More Camposol bond information: 8.45% Camposol

14.38% Yields With 2½ Year Brigus Gold Convertible Yankee Bonds

Issuer: Brigus Gold (BRD)

Coupon: 6.50%

Maturity: 3/31/2016

CUSIP:109490AA0

Ratings: NA

Price: 84.45 (10/31/13)

Yield to Maturity: 14.38 %

Portfolios: FX1 and FX2

Gold Miner, Canada

The company Primero Mining (PPP) is acquiring Brigus Gold and the change of control mandates an offer to redeem the $50 million worth of Brigus convertible notes at par.

More Brigus Gold debenture information: 14.38% Brigus Gold

 

10.25% Yields With 2 Year Average Life (Sinking) TGS Yankee Bonds

Issuer: Transportadora de Gas del Sur S.A  (TGS)

Coupon: 7.875%

Maturity: 5/14/2017

CUSIP: P9308RAX1

Ratings: B3/B-

Price: 95.465 (10/22/13)

Avg.Yield to Avg.Life:  ~10.25 % (~2 Years)

Portfolios: FX1 and FX2

Natural Gas Pipelines (monopoly), Argentina

Recent strengthening and rise of Transportadora’s stock price has greatly improved the metrics of its balance sheet and diminished the overall risks that we see in its bonds.

More TGS bond information: 10.5% Transportadora de Gas Del Sur

7% Yield to First Call (July 2014), 3¾ Year Diamorph Bonds, in Swedish Krona Issuer: Diamorph Coupon: 12.00% Maturity: 7/6/2017 CUSIP: P9308RAX1 Ratings: NA

Pays: Semi-annually Price:  110.50 (10/22/13) Yield to Maturity: ~8.6%

Yield to Worst (First Call 7/6/14): ~7.0% Portfolios: FX2 and FX3 Nanotech, Sweden During the second quarter, a fully subscribed rights issue of 18 million shares was completed.  At the end of June, 2013, total fixed assets were reported at SEK 707.4 million, with total assets being SEK 942 million. More Diamorph bond information: 7% YTW Diamorph

10.76% Yields With 2.4 Year Mriya Agro Yankee Bonds

Issuer: Mriya Agro Holding Company

Coupon: 10.95%

Maturity: 03/30/2016

Ratings: B/B-

CUSIP: M70609AA6

Price:  100.40 (10/4/13)

Yield to Maturity: ~10.76 % Portfolios: FX1 and FX2

Agriculture,  Ukraine

Agriculture product prices have substantially outpaced worldwide inflation in the last 5 years, resulting in a significant growth in revenues for Mriya.  Total revenues grew 32% year over year from 2011 through 2013, and 21% year over year comparing 1H 2012 with 1H 2013. More Mriya Agro bond information: 10.76% Mriya Agro

 

8.25% Yields With 4.4 Year Gajah Tunggal Yankee Bonds

Issuer: Gajah Tunggal

Coupon: 7.75%

Maturity: 02/06/2018

Ratings: B2/B+

CUSIP: Y71214AA1

Price:  98.185  (9/26/13)

Yield to Maturity: 8.25%

Portfolios: FX1 and FX2

Rubber Tires, Asia

The increase in net income was a 65% increase from the prior 2011.

More Gajah Tunggal bond information:  8.25% Gajah Tunggal

 

10% Yields With 2 Year Trade & Development Bank of Mongolia Yankee Bonds

Issuer: Trade & Development Bank of Mongolia

Coupon: 8.50%

Maturity: 9/20/2015 Ratings: B1

CUSIP: Y8904HAD7

Price:  97.35 (9/20/13)

Yield to Maturity: 10.0% Portfolios: FX1 and FX2

Resource Development & Financing, Asia

The bank recently had record earnings and solid growth in deposits and assets, moving it towards one of the largest Mongolian banks by assets.

More TDB of Mongolia bond Information: 10% Trade & Development Bank of Mongolia

 

9.87% Yields With 3⅔ Year Alto Palermo Yankee Bonds

Issuer: Alto Palermo

Coupon: 7.875%

Maturity: 5/11/2017

Ratings: NR/B

CUSIP: P0245MAC3

Price:  94 (9/18/13)

Yield to Maturity: 9.87 %

Portfolios: FX1 and FX2

Premier Real Estate Properties, South America

Profitable high end malls provided good profits and low debt, with highly value real estate assets.

More Alto Palermo Bond Information: 9.85% Alto Palermo

 

9.66% Yields With 2⅔ Year  Ferrexpo Yankee Bonds  

Issuer: Ferrexpo

Coupon: 7.875%

Maturity: 4/07/2016

CUSIP: G34361AA6

Ratings: NR/B

Price:  95.95 (8/23/13)

Yield to Maturity: 9.66%

Portfolios: FX1 and FX2

Steel Industry, Europe

Net income exceeding average. Ferrexpo reduced freight expenses by a whopping 33 percent,  which help prompt upgrades.

More Ferrexpo bond information: 9.66 % Ferrexpo

 

8.4% Yields With 4¾ Year NordGold Yankee Bonds

Issuer: NordGold

Coupon: 6.375%

Maturity: 5/07/2018

CUSIP: N64523AA6

Ratings: Ba3/NR

Price:  92.25 (8/16/13)

Yield to Maturity: 8.4%

Portfolios: FX1 and FX2

Gold, Asia/Africa

Revenues in H1 2013 increased by 17% from H1 2012 to US$617.1 million. The increase was mainly due to higher production volumes and gold sales, but was somewhat offset by lower realized gold prices (down 10%).

More NordGold bond information: 8.4% Yield NordGold

 

11.22% Yields With 7¼ Year Aeropuertos Argentina 2000 Yankee Bonds  

Issuer: Aeropuertos Argentina 2000

Coupon: 10.75%

Maturity: 12/1/2020

CUSIP: P0092MAD5

Ratings: B3/B-

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 Aeropuertos Argentina 2000 bond information:11.22 % Aeropuertos Argentina

To know more about this FX1 call our fixed income specialist at 971-327-8847

On a scale of A+ to F
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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