Pacific Private Asset Management is pleased to share the latest credit insights from our trusted partner Fixed Income Solutions Pty Ltd, including new issue pipeline highlights, issuer developments, and macroeconomic commentary.
📈 New Issue Pipeline – High Yield Opportunities
A series of new AUD-denominated high-yield deals are expected to launch shortly:
1. Mortgage-Backed SPV Issue
- Coupon: 3m BBSW + 5.125% (with a 3.00% BBSW floor)
- Minimum Coupon: 8.125%
- Subordination: 25% provided by issuer
- Diversified loan pool with credit and concentration limits to manage risk
2. Single-Asset Real Estate Loan
- Term: 18 months | Coupon: 3m BBSW + 6.00%
- Purpose: Rectification and renovation of a centrally located Sydney apartment block
- LVR: Conservative 50.0%
- Exit Strategy: Via unit sales or residual stock refinance
3. Multi-Tranche Property-Backed SPV
- A2 Notes: 3m BBSW + 5.00%, 20% subordination
- B Notes: 3m BBSW + 8.00%, 10% subordination
- SPV Size: $166 million, no arrears or losses to date
Clients will be notified upon formal launch of these offers.
🏗 Coronado Update – Stanwell Liquidity Agreement
Coronado has secured up to US$150 million in liquidity from Stanwell Corporation in exchange for thermal coal supply starting 2027:
- Structure: US$75m prepayment and rebate deferral (April–Dec 2025)
- Interest Rate: 13.00%
- Repayment: Physical coal delivery over 5 years
- Pricing: Mix of market-based and fixed forward pricing (higher than spot)
This arrangement bolsters liquidity at a high cost but positions Coronado for optionality during a recovery in coking coal prices. Fixed Income Solutions views this as positive for Coronado’s USD Senior Secured Notes, while reiterating the high-risk/high-reward nature of the investment.
💬 APMF Single Asset Transactions Update
Key updates from APMF include:
- Southbank: Bond repaid
- Sunbury: Loan conduct in order, maturity in weeks
- Narangba: Property on market, unconditional contract expected late June
- Mickleham & Tarneit: Performing, maturing end of year
💰 Term Deposit & Money Market Rates
Fixed Income Solutions continues to source competitive TD and NCD rates. Indicative rates (min. $250k):
| Term | Rate |
|---|---|
| 3m | 4.52% |
| 6m | 4.57% |
| 9m | 4.30% |
| 12m | 4.30% |
| 36m | 4.00% |
| 60m | 4.30% |
📞 Call: 02 8222 8904 | ✉️ TD@fixedincomesolutions.com
🌏 Economic Insights – June 2025
- Australia: Q1 GDP grew just 0.2% (1.3% YoY). Households remain cautious amid real income contraction. RBA minutes cited weak domestic and global conditions as rationale for May rate cut.
- US: May ISM manufacturing index fell to 48.5. Input costs rising due to tariffs; demand and exports remain weak.
- Canada: Central bank held rates at 2.75% amid trade uncertainty. Labour market softening; inflation slightly higher than expected.
📣 Meet the Fixed Income Solutions Credit Team
Bradley Newcombe – 25+ years in credit/equity markets. (ex-FIIG, Westpac, Millinium Capital Partners)
William Arnold – 20+ years in debt markets. (ex-FIIG, NabCapital, QTC, Standard Life)
For more details on any of these opportunities or to explore how these insights may apply to your portfolio, please contact your Pacific Private Asset Management representative.