Seeking Alpha
Bonds, registered investment advisor, portfolio strategy, foreign companies
Follow this author
Daily digest on all my authors
(934 followers)
High-yield averages for additions to the combined FX2 portfolio are over 9.8%.
The average remaining maturity of these issues is about 3 years, 4 months.
The average yield for additions to the U.S. dollar only portfolio (FX1) were about 10.25%.
Presented below is a summary of the 26 bond reviews and recommendations that we have given to our clients and Seeking Alpha over the last 12 months, from June 2013 through May 2014. The yields shown below are when these securities were added to our , , and/or
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, FX2, 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%.8.67% Yield, EastComTrans Yankee Bond Issuer: EastComTrans LLP Coupon: 7.75% Maturity: 4/22/18 CUSIP: Y2105WAA0 Ratings: B3/-/B Pays: Semi-annually Price: 97.0 (5/27/14) Yield to Maturity: ~8.67% Portfolios: FX1 and FX2 In 2013, EastComTrans increased its gross profit by almost 30%, its operating profit by over 32%, and its profit before tax by over 35%. More about .10% Yield, Aeropuertos Argentina Yankee Bond Issuer: Aeropuertos Argentina 2000 Coupon: 10.75% Maturity: 12/1/2020 CUSIP: P0092MAD5 Ratings: CAA1/CCC+ Pays: Quarterly Price: 101.75 (4/30/14)Yield to Maturity: ~10.14% 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 about .7.5% Yield, Canwel Building Materials, in Canadian Dollars Issuer: Canwel Building Materials Group () Stock Ticker: CWX.TO Price: 2.77 (4/4/14) Coupon: 5.85% Maturity: 4/30/2017 CUSIP: 13874XAA1 Ratings: NA Conversion price: 6.40 (any time prior at bondholder's option) Pays: Semi-annually Price: 94.45 (4/9/14) Yield to Maturity: ~7.94% Portfolios: FX2 and FX3 In 2013, in spite of a cold Canadian winter that saw housing starts drop by 13%, Canwel increased its net earnings by 19.7%, increased its margin to 11.0%, and increased its operating earnings by 18%. More about .10%Yield, AB InBev (Anheuser-Busch), in Brazilian Real Issuer: AmBev/Anheuser-Busch Inbev SA/NV (NYSE:) Coupon: 9.5% Maturity: 7/24/2017 CUSIP: 02319LAB1 Ratings: A2/A Pays: Semi-annually Price: 97.0 (4/16/14) Yield to Maturity: ~10.6% Portfolios: FX2 and FX3 Total revenue in the first quarter of 2014 grew by 8.9% over the year-ago quarter. Total volume and revenue per unit volume both grew by 4.4%. More about .12% Yield, MNC Investama Yankee Bond Issuer: Ottawa Holdings Pte. Ltd/PT Bhakti Investama Tbk () Coupon: 5.875% Maturity: 5/16/2018 CUSIP:
Ratings: B2/BB- Pays: Semi-annually Price: 80.25 (3/24/14) Yield to Maturity: ~12.08% Portfolios: FX1 and FX2 MNC grew EBITDA by 12% in 1Q2014 over the comparable year-ago quarter. The company's subsidiaries contributed higher revenues, EBITDA and net income compared to the same period a year ago. More about MNC Investama.10.75% Yield, Rolta Yankee Bond Issuer: Rolta LLC () Coupon: 10.75% Maturity:5/16/2018 CUSIP: U77587AA8 Ratings: -BB Pays: Semi-annually Price: 100.0 (2/19/14) Yield to Maturity: ~10.74% Portfolios: FX1 and FX2 Rolta reports that its latest nine months' consolidated revenue grew by 59.7%, and its net profit by 37.2%, over FY2014. In addition, the company received the patents it had applied for in the US for certain unique technologies and processes embedded in Rolta's offering for cloud security, enterprise integration and IT integration solutions. More about .8.25% Yield, HudBay Yankee Bond Issuer: HudBay Minerals (NYSE:) Coupon: 9.5% Maturity: 10/1/2020 CUSIP:
Rating: B3/B- Pays: Semi-annually Price: 104.8 (2/13/14) Yield to Maturity: ~8.22% Portfolios: FX1 and FX2 HudBay's Lalor (Manitoba) mine achieved commercial production ahead of guidance and under budget. Its Constancia (Peru) project is on track for first production in late 2014 and commercial production in Q2 2015, and its Reed (Manitoba) mine was completed under budget and operated at 792 tonnes per day in the first quarter. More about .8.8% Yield, Avangardco Yankee Bond Issuer: AvangardCo () Coupon: 10.0% Maturity: 10/29/2015 CUSIP: M15537AA7 Ratings: B- (Fitch) Pays: Semi-annually Price: 101.9 (1/14/14) Yield to Maturity: ~8.81% Portfolios: FX1 and FX2 In the first quarter of 2014, revenue in the company's main business segments (shell eggs and dry egg products) increased by 7% year-on-year as a result of doubling of the production and sales of dry egg products. However, consolidated revenue declined by 2%year-on-year due to the impact of the Ukrainian hryvnia devaluation against the US dollar. Export revenue continued to grow and accounted for 40% of total revenue, reaching US $62 million. More about .6.5%-9% Yield, Temple Hotels, in Canadian Dollars Issuer: Temple Hotels Inc. () Ticker: TPH.TO Toronto: $5.73 1/16/2014 Debenture (bond): TPH.DB.C Coupon: 8.0% Maturity: 12/31/2016 CUSIP:
Conversion Price: $ 5.82 Rating: none Pays: Semi-annually Price: 104.0 (12/31/13) Yield to Maturity: ~6.5% Portfolios: FX2 and FX3 Operating income increased by $380,000 or 3% during the first quarter of 2014. Cash flow from operating activities increased by $2.1 million during the same period. More about .9.66% Yield, Dana Gas Yankee SukukIssuer: Dana Gas Coupon: 9.0 Maturity: 10/31/2017 CUSIP: G273E2AB2 Rating: NA Pays: Quarterly Price: 97.875 (12/11/13) Yield to Maturity: ~9.66% Portfolios: FX1 and FX2First quarter operating profits rose 67 percent to $45 million (Dh164 million) against $27 million (Dh98 million) in Q1 2013. Production for Q1 2014 increased by 12 percent. More about .8.45% Yield, Camposol Yankee Bond Issuer: Camposol S.A. () Coupon: 9.875% Maturity: 02/02/2017 CUSIP: P19189AA0 Ratings: B Pays: Semi-Annual Price: 103.9 (11/12/13) Yield to Maturity: ~8.45% Portfolios: FX1 and FX2 Q1 2014 revenue was up 49%, and EBITDA up 83.9%, over the same quarter in 2013. More about .14.38% Yield, Brigus Gold Yankee Bond Issuer: Brigus Gold Ticker: BRD NYSE: $0.74 10/24/2013 Debenture : Coupon: 6.5% Maturity: 3/31/2016 CUSIP:
Conversion Price: $ 2.45 Rating: none Pays: Semi-annually Price: 84.5 (11/7/13) Yield to Maturity: ~14.42% Portfolios: FX1 and FX2 On February 27th, 2014, Primero Mining Company (NYSE:) and Brigus Gold announced that Primero would acquire Brigus. Brigus (now Primero) bonds are now trading at a premium. More about
from Primero Mining.10% Yield, Transportadora De Gas Del Sur Yankee Bond Issuer: Transportadora de Gas del Sur S.A (NYSE:) Coupon: 7.875% Maturity: 5/14/2017 (laddered redemption, 25 month average) CUSIP: P9308RAX1 Ratings: B3/B- Pays: Semi-annually Price: 96.25 (10/29/13) Average Life Yield: ~11.18% Portfolios: FX1 and FX2 For the quarter ended March 31, 2014, TGS posted total net revenues of 1,240.1 million Argentine pesos, compared to 825.7 million Argentine pesos recorded in the same period of 2013. Cash flow from operating activities increased over the year-ago quarter from 288.2 million Argentine pesos to 491.6 million Argentine pesos, an increase of over 70%. More about .7% Yield, Diamorph, in Swedish Krona Issuer: Diamorph Coupon: 12.00% Maturity: 7/6/2017 CUSIP: W2R38AAA3 Ratings: B Pays: Semi-annually Price: 110.55 (10/23/13) Yield to Worst Call (107.5 in 2014): ~6.96% Yield to Maturity: ~8.6% Portfolios: FX2 and FX3 Year-over-year sales for the first quarter of 2014 were up 4.2% over 2013, and operating income was up 12.0% More about .10.76% Yield, Mriya Agro Yankee Bond Issuer: Mriya Agro Holding Co. Coupon: 10.95% Maturity: 03/30/2016 CUSIP: M70609AA6 Ratings: B/B- Pays: Semi-Annually Price: 100.40 (10/4/13) Yield to Maturity: ~10.76% Portfolios: FX1 and FX2 In its most recent annual financial report (2013), Mriya showed an increase of 43.3% in revenues from operations and an increase of 17% in total revenues. The company also increased the amount of land under cultivation, and increased its agricultural yield. More about .8.25% Yield, Gajah Tunggal Yankee Bond Issuer: PT Gajah Tunggal Tbk () Coupon: 7.75% Maturity: 02/06/2018 CUSIP: Y71214AA1 Ratings: B2/B+ Pays: Semi-Annual Price: 98.185 (9/26/13) Yield to Maturity: ~8.25% Portfolios: FX1 and FX2 Gajah Tunggal's net sales increased by 5.3% in the first quarter of 2014 from the first quarter of 2013. Export sales grew by 29.6% over the corresponding period in 2013, thanks to a recovery in sales to the US and Europe. More about .10% Yield, Trade & Development Bank of Mongolia Yankee Bond Issuer: Trade & Development Bank of Mongolia Coupon: 8.5% Maturity: 10/15/2015 CUSIP: Y8904HAD7 Ratings: B1 Pays: Semi-annually Price: 97.35 (9/20/13) Yield to Maturity: ~10% Portfolios: FX1 and FX2 Trade and Development Bank of Mongolia's operating income more than doubled, increasing by 102.5% from 2012 to 2013. Net profit did even better, increasing by 120%. More about .9.85% Yield, Alto Palermo Yankee Bond Issuer: Alto Palermo APSA Coupon: 7.875 Maturity: 5/11/2017 CUSIP: P0245MAC3 Ratings: -/B+/B+ Pays: Semi-annually Price: 94.0 (9/18/13) Yield to Maturity: ~9.87% Portfolios: FX1 and FX2 From 2012 to 2013, sales were down by 0.7%, and operating income was down by 3.1%. More about .9.6% Yield, Ferrexpo Yankee Bond Issuer: Ferrexpo PLC () Coupon: 7.875 Maturity: 4/07/2016 CUSIP: G34361AA6 Ratings: B+/B2/B Pays: Semi-annually Price: 95.95 (8/23/13) Yield to Maturity: ~9.66% Portfolios: FX1 and FX2 In fiscal year 2013, Ferrexpo's were up 11%, before-tax profit was up 15%, and cash flow from operating activities was up 96%. More about .8.4% Yield, NordGold Yankee Bond Issuer: NordGold () Coupon: 6.375% Maturity: 5/07/2018 CUSIP: N64523AA6 Rating: Ba3 Pays: Semi-annually Price: 92.25 (8/16/13) Yield to Maturity: ~8.4% Portfolios: FX1 and FX2 First quarter 2014 revenues declined to US$274.9 million from US$296.8 million due mostly to a decline in the average realized price of gold over the period. In spite of this decline, EBITDA increased by 6% year-on-year due to higher production and strict cost control, and net income rose by 68% (US$24.6 million in Q1 2014, compared to US$14.6 million in Q1 2013). More about .11.22% Yield, Aeropuertos Argentina Yankee Bond Issuer: Aeropuertos Argentina 2000 Coupon: 10.75% Maturity: 12/1/2020 CUSIP: P0092MAD5 Ratings: B1/B- Pays: Quarterly 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 about : here and here.8.9% Yield, Berau Coal Yankee Bond Issuer: Berau Coal Energy Coupon: 7.50% Maturity: 03/13/2017 CUSIP: Y711AQAA4 Ratings: B1/BB- Pays: Semi-Annual Price: 95.0 (7/26/13) Yield to Maturity: ~8.89% Portfolios: FX1 and FX2 Pre-tax profit increased from US$7.8 million in 2012 to $56.6 million in 2013. Net cash flow from operating activities increased from US$16.5 million to $63.5 million over the same period. More about .8.5% Yield, Federal Grid Company, in Russian Rubles Issuer: Federal Grid Company Coupon: 8.446% Maturity: 3/13/2019 CUSIP: G3R0K7AA8 Ratings: Baa3/BBB Pays: Semi-annual Price: 99.75 (7/16/13) Yield to Maturity: ~8.5% Portfolios: FX2 and FX3 Federal Grid Company's revenue for Q1 2014 increased by 11% year-on year, while BITDA increased by 13% over the same period. More about .10% Yield, TransGlobe Energy, in Canadian Dollars Issuer: TransGlobe Energy (NASDAQ:) Coupon: 6.00% Maturity: 3/31/2017 CUSIP:
Ratings: NA Pays: Semi-annually Price: 88.1 (6/28/13) Yield to Maturity: ~9.87% Portfolios: FX2 and FX3 The company's oil sales were up 41% in 2013 over their 2012 levels. Cash flow from operating activities was up 48%. Cash and cash equivalents rose by 89%. More about .10% Yield, Coelba, in Brazilian Reals Issuer: Companhia de Eletricidade do Estado do Bahia (COELBA) Coupon: 11.75 Maturity: 4/27/2016 CUSIP: P30587AA0 Rating: Baa2/BBB- Pays: Semi-annual Price: 104.5 (6/19/13) Yield to Maturity: ~9.88% Portfolios: FX2 and FX3 During 2013, revenue decreased by 14%, while cash flow from operating activities declined by 6.5%. At the end of 2013, cash and cash equivalents stood at BRL 573.5 million. More about .11% Yield, Transportadora De Gas Del Sur Yankee Bond Issuer: Transportadora de Gas del Sur S.A
Coupon: 7.875% Maturity: 5/14/2017 (laddered redemption, 25 month average) CUSIP: P9308RAX1 Ratings: B3/B- Pays: Semi-annually Price: 88.4 (6/3/13) Average Life Yield: ~15.38% Portfolios: FX1 and FX2 For the quarter ended March 31, 2014, TGS posted total net revenues of 1,240.1 million Argentine pesos, compared to 825.7 million Argentine pesos recorded in the same period of 2013. Cash flow from operating activities increased over the year-ago quarter from 288.2 million Argentine pesos to 491.6 million Argentine pesos, an increase of over 70%. More about .The chart below compares the 19 Yankee Bonds we placed in FX1 over the last year with the Emerging Markets Corporate Bond ETF (BATS:) and the Total Bond Market ETF (NYSEARCA:). Considering that the iShares Emerging Markets Corporate Bond ETF tracks 192 different bonds, this is a relatively small sample of issues that we have reviewed as selected for addition to our fixed income clients, and it is not intended to be a complete comparison that can or should be made. We focus more on short &maturity certain& bond cycles when interest rates are climbing. By making comparisons in several categories, such as indicated yields and projected costs, it becomes much easier to see why this approach to fixed income investing is so attractive. Considering that we have successfully steered clear of any bond defaults with this high yield, high cash flow, short maturity model, it's also easy to understand why most of our bonds selections are simply held to maturity.NameProjected YTMExpensesAverage Maturity iShares Emerging Markets Corporate Bond4.16%0.60%7.65 years Total Bond Market ETF1.97%0.10%7.7 years Fixed Income 1 portfolio (FX1)10.25%0.50%*3.34 years Fixed Income 1 (FX1) compared to the best.The last 19 USD bonds added to FX1 offer almost 2½ times the yield of the iShares emerging corporate bond ETF.The Fixed Income 1 last 9 bonds issues cost .40 basis points more than the very low cost BND ETF.The last 9 Fixed-
bonds average maturity is about 55% shorter than the BND ETF*This is a proposed cost only.We hope you enjoy our high income approach!________Please note that all yield and price indications are shown from the time of our research and acquisition for some client portfolios. Our reports are never an offer to buy or sell any security. We are not a broker/dealer, and reports are intended for distribution to our clients. As a result of our institutional association, we frequently obtain better yield/price executions for our clients than may be initially indicated in our reports. We welcome inquiries from other advisors that may also be interested in our work and the possibilities of achieving higher yields for retail clients.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
Seeking Alpha PRO helps fund managers:
Research new investment ideas
Reduce risk
For an overview of our products and pricing:
Work Email
Select AUM
(Assets under Management)
Our PRO subscription service was created for fund managers, and the cost of the product is
prohibitive for most individual investors.
At this time, we do not yet have a subscription product for individual investors.
If you'd like us to contact you when it's ready, please .
If you are an investment professional with over $1M AUM and received this message
and you will be contacted shortly.
SymbolPrice% ChgRemove
This article has&
&comments. To read them or add your own, .
Now that you’ve read this, are you Bullish or Bearish on ?
BullishBearish
Thanks for sharing your thoughts.
Why are you ?
Submit & View ResultsSkip to results >>
+Add Authors
+Add Stocks
Follow these related stocks
(Click to add stocks to your portfolio)
Share this article with a colleague