So CGF's capital structure and hence value would be very susceptible to a bond "crash" or sell-off.
It depends.
If it is just a broad-based bond sell-off we're talking about (i.e. a generic widening in credit spreads, and/or a rise in benchmark yields), CGF will be largely neutral, because the bulk of their annuity liabilities will also be revalued at a higher base yield and Illiquidity Premium (which is a function of credit spreads). That is exactly what happened in 2016H1 (see my previous post).
On the other hand, if the bond crash is driven by a large amount of actual defaults (failure to pay, restructuring, etc.) in the bond portfolio, or by a material widening of credit spreads specific to a particular sector (e.g. RMBS/CMBS), then CGF would indeed take a big hit in terms of PCA ratio, in all likelihood.
Let me know if there is anything unclear.
- Forums
- ASX - By Stock
- Why has the share dropped.
CGF
challenger limited
Add to My Watchlist
0.25%
!
$8.08

So CGF's capital structure and hence value would be very...
Featured News
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
|
|||||
Last
$8.08 |
Change
0.020(0.25%) |
Mkt cap ! $5.586B |
Open | High | Low | Value | Volume |
$8.09 | $8.14 | $8.01 | $21.21M | 2.623M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 13899 | $8.04 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$8.09 | 3351 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 13899 | 8.040 |
1 | 6063 | 8.030 |
1 | 7080 | 8.020 |
1 | 4357 | 8.010 |
1 | 1500 | 8.000 |
Price($) | Vol. | No. |
---|---|---|
8.090 | 3351 | 1 |
8.130 | 1954 | 1 |
8.150 | 2362 | 3 |
8.180 | 400 | 1 |
8.190 | 19827 | 5 |
Last trade - 16.11pm 08/07/2025 (20 minute delay) ? |
Featured News
CGF (ASX) Chart |