ABE - Australian Bond Exchange Holdings

Does anyone have experience with Australian Corporate Bond Exchange - good bad or indifferent ? I was thinking of buying a portfolio of Australian Corporate Debt and (apart from FIIG) was wondering what peoples experience was. There does not seem to be a lot of choice.

I'm doing a 'Dun and Bradstreet' on them

Thanks and regards
David

DavidK said:

Does anyone have experience with Australian Corporate Bond Exchange - good bad or indifferent ? I was thinking of buying a portfolio of Australian Corporate Debt and (apart from FIIG) was wondering what peoples experience was. There does not seem to be a lot of choice.

I'm doing a 'Dun and Bradstreet' on them

Thanks and regards
David

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1)What happens if interest rates go up?

2) What happens if something goes wrong??? Who/ what structure actually owns the bonds??

3) What happens if the underlying companies cannot service their debt?

4) What is the taxation structure of the bonds? Property can have discount capital gains and shares can have dividend imputation.




https://xtbs.com.au/about-us/

https://xtbs.com.au/legals/

http://www.aubiz.net/company/australian-bond-exchange-pty-ltd-605038935/

https://search-afsl.com/Australian Bond Exchange Pty. Ltd./afs-licensee/484453/



http://www.globalcapital.com/article/k58p2g92r71c/john-mcniven

It appears this is the same company, and now listed on the ASX

Australian Bond Exchange Holdings Limited (ASX code : ABE)


Listed today; opened at 70c, down to 60c and now around 63c

l would not expect this to shoot out the lights. Probably a vehicle to attract staff/ offer exits for existing management. (Executive Loan Funded Share Plan)

will watch but am unsure if i will buy ,

could be a contrarian play , if you think an economic meltdown is coming sparking a mass liquidation of interest-rate securities ( or the less exciting ACTUAL economic recovery and rising interest rates )

cheers

thanks for the heads up

Local and foreign Corporate bond exposure can be achieved now via ETF's, risk and yield spread.

So_Cynical said:

Local and foreign Corporate bond exposure can be achieved now via ETF's, risk and yield spread.

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yes but call me fussy but i like to be very particular what i buy ( rather than a basket of them )

remember how those GFC CDOs were structured the ETFs MIGHT have a similar structure

BTW did anyone buy in today (to ABE ) the price slid but that MIGHT be opportunity for the brave

DYOR

( i do not hold ABE )

( imo ) now is probably not the time to buy bonds , but a trading facility/platform that might be different

my year long tip for next year is ABE ( but remember my win rate this year is TERRIBLE )

recently listed , so must be considered higher risk

i don't hold this yet , and i would rather watch for a while than buy in straight away ( but still mildly interested )

DYOR

i do hold this now the first order @ 55 cents a share and a second part-filled order @ 48 cents a share

DYOR

this could snap back to fill the order @ 48 cents or go higher as folks gambling a bond ( and derivatives ) trader can go on to better things during a volatile , and uncertain market

Australian Bond Exchange Holdings Limited (ASX: ABE) ASX Announcement
- Addendum to Quarterly Activity Report and Appendix 4C
Institutional business Further to ABE's quarterly activity report lodged on 28 January 2022, and in response to feedback ABE would like to provide the following further information with respect to our institutional trading activity
 While no material institutional business was recorded in the preceding quarter, given the nature of institutional trading, this is not unusual. There is no current intention to cease institutional trading.
 The focus on private clients in the preceding quarter was not designed to remove activity from the institutional trading. Rather this was more a reflection of the live opportunities within the private client portfolio during the period. ABE has multiple product and revenue channels, and has brought on staff and resources to grow all of them.
 Given its nature, ABE's institutional trading revenue has historically been market opportunity driven. Hence while the institutional trading revenue on a like for like basis for the preceding quarter is lower than revenue generated from the private client portfolio, ABE considers that to be a reflection of the greater opportunities in the private wealth portfolio during the period.
 ABE continues to explore and convert institutional trading opportunities when they arise. Authorised by the board of directors of Australian Bond Exchange Holdings Limited.

DYOR

oh well it certainly helped fill my part-filled order

now for the longer term

Australian Bond Exchange Holdings Limited (ASX: ABE) ASX Announcement 16 February 2022

Australian Bond Exchange Holdings Limited (‘ABE’ or ‘the Company’) (ASX: ABE) is pleased to announce the appointment of TD Prime Services LLC (‘TDPS’), which operates under the TD Securities brand, as ABE’s prime broker to provide prime brokerage and custodial services to ABE’s Singapore subsidiary, ABE Capital Markets Pte Ltd, effective immediately.

TDPS is a U.S. registered broker-dealer and a member of the Financial Industry Regulatory Authority (‘FINRA’). This appointment and resulting commercial engagement will significantly expand ABE’s capabilities in Australia and abroad.
The appointment is the culmination of two years of strategic collaboration between ABE’s teams in Australia and Singapore and TDPS’ team in New York.
The appointment means Australian investors will have improved access to global financial markets in alignment with ABE’s mission to make financial products accessible to all. The appointment complements ABE’s existing Australian custodian relationship with Perpetual Limited (ASX: PPT). What this means for Australian Investors ABE believes that Australian private investors, financial advisers, stockbrokers and superannuation funds will significantly benefit from the additional range of products and services that ABE will be able to introduce to the Australian market by combining its existing trade and settlement technology with unparalleled direct access to global financial markets in a manner not seen before in Australia.
The appointment of TDPS as prime broker represents a significant step for ABE in working towards achieving its strategic goals of eliminating barriers to entry to the bond market, simplifying the way financial markets work, providing improved access and more efficient trading, lowering transaction costs, and introducing new levels of transparency.
About TD Securities TD Securities is a Canadian investment bank and financial services provider that offers advisory and capital market services to corporate, government, and institutional clients worldwide.
It is the investment banking arm of Toronto-Dominion Bank Group, which is the sixth largest bank in North America by number of branches serving more than 26 million customers.
The bank had CAD$1.7 trillion (AUD$1.9 trillion) in assets in fiscal 2020.
TD Securities provides a variety of capital market, investment banking and corporate banking products and services, offering underwriting and distribution of new debt and equity issues, advice on strategic acquisitions and divestitures, and assistance with trading and investment activities.
About Prime Brokerage Prime brokerage is the generic term for a bundled package of services offered by large global investment banks to hedge funds and other financial institutions (such as ABE) to be able to trade, borrow and invest in cash, securities and complex derivative products.
Prime brokerage services are generally only offered to highly sophisticated institutional finance companies with significant market capitalisation and operational capability. Prime brokers’ access to worldwide exchanges, complex multi-asset products and global markets provides an unparalleled advantage for financial institutions looking to trade and compete on the global stage. Services typically bundled into the prime brokerage package include (but are not limited to):
• Global custody and clearing
• Trading and direct market access across the global financial markets
• Securities lending
• Financing and leverage solutions
• Technology support and reporting
• Capital introduction
• Operational support
• Risk management advisory The Company remains well-funded and is focused on a number of operational initiatives to increase retail and institutional client numbers and volumes while also building out the demand pipeline to originate and distribute new products as they are introduced.

Steve Alperstein Company Secretary

DYOR

i hold ABE

Australian Bond Exchange signs agreement with ANZ to pilot ABE’s transaction system utilising its NPP network​

 Australian Bond Exchange has developed a settlement process which aims to reduce
settlement time of bond trades from T + 2 to near real-time
 A recent set of agreements signed with Australia and New Zealand Banking Group Limited
(ANZ) is part of a wider industry approach to bring innovation and speed in the settlement
of financial transactions
 This exciting development is p
 art of Australian Bond Exchange’s broader strategy to eliminate barriers to entry to the
Over-The-Counter (OTC) bond market for private investors and grow the asset class in
Australia
Australian Bond Exchange Holdings Limited (ASX: ABE) (“Australian Bond Exchange” or “the
company”) is pleased to announce it has recently signed a set of agreements with ANZ to be part
of its pilot programs to trial ABE’s transaction and settlement process utilising the New Payments
Platform (NPP).
The pilot programs will enable Australian Bond Exchange to test its newly built trading system that
automates multiple parts of the OTC transaction process, facilitating fast and cost-effective
transactions and settlement. The objective is to link the transaction system with the NPP which will
reduce settlement of trades from the current T + 2 days down to near real-time.
The NPP is an open access infrastructure for fast payments and was launched in Australia in
February 2018. The NPP was developed via industry collaboration to allow for near real-time funds
availability to the recipient on a 24/7 basis. The NPP infrastructure supports the independent
development of ‘overlay’ services to offer innovative payment services to end users.
The team at Australian Bond Exchange has been working towards incorporating its technology
and transaction process with NPP since the company launched in 2016. ABE has utilised in-house
capability and technical expertise and does not anticipate needing costly external IT support to
make this feature available once proven through the pilot testing phase and they are able to be
supported by the Australian banks.
ABE Managing Director and CEO Bradley McCosker said: “Australian Bond Exchange is dedicated
to delivering innovation that offers a broader set of investors easy access to the OTC bond market,
breaking down the barriers to entry for retail investors. ABE aims to provide equal access to the
bond market for everyone, facilitate ease of trading and ensure the highest possible market
transparency.
“Access to corporate bonds has typically only been available to institutional and wholesale
investors, however through its technology and transaction process Australian Bond Exchange is
making bonds available to all Australians, allowing them to include bonds as a staple in their
investment portfolios.”
More information on Australian Bond Exchange’s transaction and settlement process and system
is available on the ABE website (link)
– ENDS –

DYOR

i hold ABE

maybe i haven't done my dough here yet

Very unhappy with ABE i purchased shares at the start for .65 on a strong recommendation from ABE, now they are at .110 i am a Pensioner and this loss has certainly hurt me. Never believe in them again, false info. and lies to get you to purchase.
Trevor

trevorjp said:

Very unhappy with ABE i purchased shares at the start for .65 on a strong recommendation from ABE, now they are at .110 i am a Pensioner and this loss has certainly hurt me. Never believe in them again, false info. and lies to get you to purchase.
Trevor

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Hi Trevor...

I had not heard of ABE till I saw your post....
Must say that after doing some quick Research, I could not find one good reason to buy into ABE at the open....
Most of the updates were driven by ABE themselves, that's always a Bad Sign IMO....
Then there are several clues given within each of those ABE generated releases that would have scared me off ....

The classic paragraph was -
“Access to corporate bonds has typically only been available to institutional and wholesale
investors, however through its technology and transaction process Australian Bond Exchange is
making bonds available to all Australians, allowing them to include bonds as a staple in their
investment portfolios.”...

Did anyone not realise that probably, institutional and wholesale investors, were not really interested in corporate bonds back in late 2021, So I guess ABE, and others, had a thought bubble, Ahh Haa, lets make an offer that the Sheep cannot refuse, lets make the OTC Bond Market available to everyone...

There were way too many negative signals in virtually every one of the above posts....

I think the OTC Bonds were started back sometime is 2013 - never had much time for any of them..

FA is Non- Existant, TA is disgusting, a search of the directors holdings, and of the Substantial Shareholders List is depressing....

Could be that I've misunderstood something with ABE, All I can see, were, and still are, -ives.....

Sorry about that above opinion, but this is a tough occupation...

DrBourse said:

Hi Trevor...

I had not heard of ABE till I saw your post....
Must say that after doing some quick Research, I could not find one good reason to buy into ABE at the open....
Most of the updates were driven by ABE themselves, that's always a Bad Sign IMO....
Then there are several clues given within each of those ABE generated releases that would have scared me off ....

The classic paragraph was -
“Access to corporate bonds has typically only been available to institutional and wholesale
investors, however through its technology and transaction process Australian Bond Exchange is
making bonds available to all Australians, allowing them to include bonds as a staple in their
investment portfolios.”...

Did anyone not realise that probably, institutional and wholesale investors, were not really interested in corporate bonds back in late 2021, So I guess ABE, and others, had a thought bubble, Ahh Haa, lets make an offer that the Sheep cannot refuse, lets make the OTC Bond Market available to everyone...

there were way too many negative signals in virtually every one of the above posts....

FA is Non- Existant, TA is disgusting, a search of the directors holdings, and of the Substantial Shareholders List is depressing....

Could be that I've misunderstood something with ABE, All I can see, were, and still are, -ives.....

Sorry about that above opinion, but this is a tough occupation...

Click to expand...

as an ABE holder ( deeply underwater but not as deep as Trevor )

yes i am disappointed , and in hindsight i should have more critical in my research , i was hoping for a flood of corporate debt to be issued as major funding sources turned down the tap ( except to selected buddies/companies )

am reticent to add more anytime soon ( but hope i am wrong on that as well )

ABE was one of the week's worst performers, so I thought I'd have a look.

since listing:

.
Honest, ABE, you could do better... that's not pretty, is it!?
.
A friend who holds corporate bonds had a look at this mob when FIIG was cyber attacked. His aim; to maybe buy bonds via them. His conclusion; a joke outfit, very small, big spreads, 'cowboy' staff. He chose to not engage.

Corporate bonds are held by institutional fund managers, and the wholesale market has a certain depth. Retail, however, wanting to get a bite are up against wide spreads so there's little benefit to trade, as any benefit quickly erodes. And often illiquid. Anything non-investment grade under BBB can have impactful default likelihoods.

If the model is to make money on OTC trades , I can't see that being a robust business.

So, I'm not surprised it is floundering.

trevorjp said:

Very unhappy with ABE i purchased shares at the start for .65 on a strong recommendation from ABE, now they are at .110 i am a Pensioner and this loss has certainly hurt me. Never believe in them again, false info. and lies to get you to purchase.
Trevor

Click to expand...

Stay away from these corrupt and dishonest people - they are crooks. They will also try and sell you their totally worthless and junk ABE shares so you can contribute to the directors' pension funds and which have tanked from 70C to 2c. They also lied about their "future forecast " share value of $1.95 - a totally baseless and fictitious "forecast" made up solely for the purpose of deceiving you to buy their crappy shares. Stay away especially from Chris Satchi - one of the directors and a snake-oil sales guy. They are very bad news.

but , but junk debt is basically only refined snake oil ( most of the time )

it might turn around but am no way holding my breath on that , however between these 'niche' managed funds and other less prestigious stuff thrown at the market , maybe worth a glance or two ( even if just to see if there is a tolerable exit )