Australian Bond Exchange

ABX Weekly 24/07/2019

Today RBA governor Philip Lowe gave a keynote speech titled Inflation Targeting and Economic Welfare 

Here are the key points: 

  • RBA governor Philip Lowe says the board is prepared to cut interest rates further if the economy does not grow fast enough 
  • “It is highly unlikely that we will be contemplating higher interest rates until we are confident that inflation will return to around the midpoint of the target range,” 
  • Even if it does not cut rates, Mr Lowe said “it is reasonable to expect an extended period of low interest rates” 
  • The RBA believes that greater participation in the labour market is a key factor keeping wages growth and inflation low 
  • “In my view the evidence does not support the idea that a change to our inflation target would deliver better outcomes than achieved by our current flexible inflation target”. 
  • “We are living in a world of low and stable inflation and low unemployment. It is useful to remind ourselves of this sometimes.” 


New Retail Bond Opportunities

Securing 4-5% returns with an investment in one of Australia’s leading technology companies. One of our favourite bond issuers, NextDC, has just seen two new bonds become available. 

NextDC is an ASX200-listed company and Australia’s leading independent data centre operator. The next decade will see global cloud infrastructure continue its extraordinary growth, continuing to fuel and accelerate ground-breaking advancements in Artificial Intelligence, the Internet of Things and Blockchain technology. NextDC’s positive credit trajectory is bolstered with strong revenue and EBITDA growth and continued expansion in 2019 building new sites in Sydney, Melbourne and Perth.
NextDC has had several successful bond issues in the past and is back with some great opportunities for investors.

You can expect a return between 4-5% for these bonds but you must act now. As these bonds are newly available to retail clients, they are running out the door. Call us now to find out how you can secure your return. 

02-8249-1984 Markus 

02-8249-1985 Ben 

02-8249-1986 Katherine 

02-8249-1987 Lex 

02-8249-1988 Curt 


Bond Details 

  2022 Fixed  2022 Floating 
ISIN  AU3CB0254480  AU3FN0043337 
Coupon Type  Fixed  Floating 
Coupon Rate  6.00%  BBSW+3.75% 
Coupon Payment   Semi-Annually  Quarterly 
Maturity Date  9th June 2022  9th June 2022 
Type / Rank  Senior Unsecured  Senior Unsecured