YLDX’s 7.1% pa yield is an alternative to hybrids
The $40 billion ASX bank hybrid market is going to disappear by 2032 and investors want an alternative that offers similar yields, liquidity, and credit default risks.
Coolabah Capital Investments has developed a unique listed ETF version of its popular Global Floating-Rate High Yield Fund that is called the Coolabah Global Floating-Rate High Yield Complex ETF (CBOE: YLDX).
YLDX offers a 7.1% pa gross cash running yield that is superior to the 6.9% pa non-cash yield paid by major bank hybrids. YLDX’s average credit rating of A+ is much higher than the BBB rating on major bank hybrids. Credit ratings are proxies for default risks (higher is better).
YLDX’s portfolio comprises of liquid bonds issued by some of the best rated banks and companies in the world. These bonds have their interest rate and FX risks fully hedged. The underlying liquidity or trading volumes in these bonds is much higher than the ASX hybrid market.
YLDX has daily access rights and pays monthly income distributions in the form of a cash yield rather than the franked non-cash yield offered by hybrids.
YLDX is actively managed by Coolabah Capital Investments, which has $15 billion of FUM and Australia’s largest high-grade fixed-income team, including 53 professionals. Coolabah is also the country’s most active bond fund manager as measured by total turnover. YLDX is based on the 1.5 billion Floating Rate High Yield Fund that Coolabah manages.
YLDX is rated Recommended by Zenith Investment Partners.
YLDX can be accessed through your share trading platform and is also available as a managed fund, which can be accessed via our website, (VIEW LINK).
YLDX's portfolio uses gearing or leverage to enhance its yield. Leverage can amplify gains and also amplify losses. To understand YLDX’s risks better, please read the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) which can be obtained by visiting (VIEW LINK).


1 stock mentioned
1 fund mentioned