Corporates & Institutions » Fixed Interest Products
Fixed interest products such as Term Deposits, Bonds and Floating Rate Notes often play an important role in our clients' investment strategies and portfolios. For example, in times of extended market volatility, they can provide a strong stabilising influence while still delivering strong returns.
Accordingly, we have a dedicated Fixed Interest Desk, comprising a handful of experienced professionals with an average of 15 years in this specialist field. The Desk works in close partnership with our team of Private Client Advisers to identify the Fixed Interest products that provide Ord Minnett clients with the most suitable offering at any time.
Fixed Interest investments fall into three main categories:
Our Fixed Interest Desk has access to a wide range of Term Deposits available Australia-wide and so can quickly identify the product that delivers the highest return while also matching your time horizon, liquidity and risk profile. This is an excellent service that exemplifies the value that Ord Minnett brings to the table for its clients.
Ord Minnett has established a strong presence in the unlisted or “professional” fixed income market. This adds to the existing capabilities in the ASX listed fixed interest market, providing our clients with:
- A greater choice of securities in which to invest, and
- Access to securities higher in the capital structure (Senior & Subordinated Debt)
Government
- Government issued securities have increased in attraction during the GFC, due to the low coupon capital repayment risk, and their defensive qualities in times of financial stress
- Ord Minnett provides access to an array of Federal and State Government issued bonds, across a choice of maturity profiles
Corporate
There are a number of corporate bonds available in the unlisted bond market. This incorporates bonds issued by retailers (Woolworths and Wesfarmers), energy and resource companies (Santos, Woodside), property companies (Mirvac, GPT), infrastructure companies (Transurban, Singapore Power), to name a few.
Under a new ASIC regime designed to expand the listed debt market in Australia, the listed fixed interest market now includes both hybrid (part fixed/part floating) securities and fixed-only securities.
In September 2010 Ord Minnett was joint Lead Manager to the first issue of fixed interest under this new regime – tbe Primary Health Care Retail Bonds Series A. As Joint Lead Manager to the issue, Ord Minnett was able to offer clients a firm allocation of the Bonds before they were listed on the ASX.
This is an excellent example of the opportunities that Ord Minnett is able to clients via its dedicated Fixed Interest desk.
