Now that we have completed the Third Quarter 2013. We’re providing a simple recap of our posted bonds that we have researched and published with a summary of updated numbers and reviews on the companies and their dominant if not monopolistic position. This 11 bond summary for the last 3 months of plus the average, the numbers appear outstanding after the average net yield was 9.17% with a average 47 month maturity or 3.91 years. 72% was placed in US dollars, with the following breakdown:
· 8 Yankee FX 1 and FX 2 with an average yield of 9.23% and maturity of 3.93 years.
· 1 Russian Ruble FX2 and FX3
· 1 Brazil Real FX2 and FX3
· 1 Canadian Dollar FX2 and FX3
8.25% Yields, Gajah Tunggal, Yankee bond
55 month maturity.
The increase in net income was a 65% increase from the prior 2011.
Issuer: Gajah Tunggal
Yield to Maturity: 8.25%
Rubber Tires Asia
More Gajah Tunggal bond information:8.25% Yields, Gajah Tunggal
10% Yields with Trade & Development Bank of Mongolia bond
25 month maturity.
The bank had record earnings, and a solid growth in deposits and assets as it is becoming the largest Mongolian banks by assets.
Issuer: Trade & Development Bank of Mongolia
Yield to Maturity: ~10%
More Mongolia Bank Bond Information: 10% Yields Trade & Development Bank
9.85% Yields – Alto Palermo’s Yankee bond
50 month maturity.
Profitable high end mall provided good profits and low debt, with highly value real estate assets.
Issuer: Alto Palermo
Yield to Maturity: ~9.85 %
South American Trophy Real Estate
More Alto Palermo’s Bond Information: 9.85% Yields – Alto Palermo’s
9.66 % Yields Ferrexpo bond
31 month maturity.
Net income exceeding average. Ferrexpo reduced freight expenses by a whopping 33 percent, which helped in bringing many stock upgrades.
Yield to Maturity: ~9.66%
European Steel Industry
More Ferrexpo bond information; 9.66 % Yields Ferrexpo
8.4% With NordGold Yankee bond
56 month maturity
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%).
Yield to Maturity: ~8.4%
More NordGold bond information:8.4% Yield NordGold
11.22 % Yields From Aeropuertos Argentina 2000’s 7+ Year bond.
This is a sinking bond where ½ of the principal will be returned in 4 years giving, thus giving a non reconciled this increase safety and current cash flow, 75 month maturity.
Issuer: Aeropuertos Argentina 2000
2012 Year review in Argentine Pecos, Revenues up 66%, Net Income up 46%
showing excellent gains in revenues, and has good operating and net income.
Issuer: Aeropuertos Argentina
Yield to Maturity: ~11.22 %
South American Airport Monopoly
More Aeropuertos Argentina 2000 bond information:11.22 % Aeropuertos Argentina
8.9 % Yields, Berau Coal, Yankee bond
42 month maturity
First half of 2013 Takeaway: Last Quarter Production up 19% from H1 2012, Coal price for H1 2013 fell 20%, Production cost of sales down 10%, Major cost reduction initiatives underway, EBITDA of $74m (H1 2012: $139m), Operating Loss of $11m (H1 2012: Profit $52m)Group Net Debt of $389m (31 December 2012: $514m). Looking at become much more efficient financial with new leadership.
Issuer: Berau Coal Energy
Yield to Maturity: ~8.9 %
South Pacific coal
More Berau Coal bond information: 8.9 % Yields, Berau Coal
8.5% Yield in Rubles, Federal Grid Co bond
66 month maturity
Half year takeaway for 2013 in rubbles , Revenues up 14%, EBITDA down 3.8%, Operating profit of RUB 10,619 million, Adj. profit for the period RUB 7,878 million, Adj. EPS 0.006 RUB, Government has restructured its ownership.
Issuer: Federal Grid Company
Yield to Maturity: ~8.5%
Russian Utilities Monopoly
More Federal Grid bond information: 8.5% Yield Federal Grid Co
10.1 % Yields in Canadian dollars TransGlobe Energy’s convertible bonds
42 month maturity
Half year takeaway for 2013 in Canadian dollars. Revenues up 2%, Funds flow from operations down 3%, Profit per diluted share down 48%. Funds flow from operations guidance still at of $145 million ($1.92/share), Long term forecast of oil production reduced.
Issuer: TransGlobe Energy
Yield to Maturity: ~10.1%
North American/ Middle East oil.
More TransGlobe Energy bond information: 10.1 % Yields TransGlobe Energy
9.94 % Yields From This Brazilian Utility Company’s bonds
31 months maturity
Issuer: Companhia de Eletricidade do Estado do Bahia (COELBA)
Yield to Maturity: ~9.94%
South American Power Utility Monopoly
More COELBA bond information:9.94 % Yields COELBA
11.6 % Yields From Transportadora de Gas Del Sur’s Four Year Bonds
44 month maturity
Recap for 1st Half of 2013 in Argentina pesos’, Revenue up 10%, Cost of Goods Sold was flat, gross profit up 25%. Strong operational improvements.
Issuer: Transportadora de Gas del Sur S.A
Yield to Maturity: 11.6 %
South American Natural Gas Pipeline Monopoly
More TGS bond information:11.6 % Yields Transportadora de Gas Del Sur’s
We compared our last 8 bonds we placed in FX1 with USD Emerging Markets Bond ETF US (EMB) This is a small sub-sample of highlighted issues, not a complete comparison that we do believe that should be reviewed. We have focused more on short maturity certain bonds cycles when interest rates are climbing. As you could see in several categories such as cost and current yields our approach is very attractive. Again we are a short modeled income house that holds most bonds to maturity, and has never seen a default.
iShares Emerging Markets Corporate Bond CEMB
iShares Core Total U.S. Bond Market ETF
Fixed Income 1 portfolio
Fixed Income 1 compared to the best.
The FX1 last 8 USD bonds provided a 99% higher boost in yielding than the emerging corporate bond market.
The Fixed Income 1 last 8 bonds issues cost .42 basis points more than the very low cost AGG.
The last Fixed Income 1 8 bonds maturity is 26% shorter than the shorter CEMB ETF
*This is a proposed cost only.
We hope you could join our high income approach
Always putting your interests first.
To know more about this portfolio call our fixed income specialist at 971-327-8847
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