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Why did NBI dip last week?

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Why did NBI dip last week?

Last week NBI dropped steeply to $1.75 despite the lack of any bad news. Could this be due to a perception that official interest rates will be increased thus lowering bond prices and hence the NTA? What factors influence the price of this fixed income product?

Sandy B


Hi Sandy,

Drops like that would normally be associated with a big widening of credit spreads due to an external market shock, i.e. the markets pricing of default risk. That wasn’t the case. Interest rates going higher are not a new thing for the market, and while they are a negative for fixed rate bonds , I doubt that would be the reason. The NTA on the fund sits around $1.96/97 and hasn’t changed much. It’s worthwhile keeping an eye on the daily NTA which is released to the ASX . I suspect someone has traded a reasonable parcel and not used a limit order, which has caused a spike lower in the price.  NB. MM used to own NBI in the Income Portfolio however we sold out some time ago.

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NBI Global Corportae Income Trust (NBI)
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