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.
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$8.02

So CGF's capital structure and hence value would be very...
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Last
$8.02 |
Change
-0.020(0.25%) |
Mkt cap ! $5.527B |
Open | High | Low | Value | Volume |
$8.06 | $8.06 | $7.95 | $2.563M | 320.3K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
51 | 9476 | $8.01 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$8.02 | 11823 | 14 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
45 | 8476 | 8.010 |
27 | 11113 | 8.000 |
16 | 11204 | 7.990 |
14 | 18304 | 7.980 |
8 | 10402 | 7.970 |
Price($) | Vol. | No. |
---|---|---|
8.020 | 11245 | 10 |
8.030 | 20329 | 25 |
8.040 | 20326 | 18 |
8.050 | 12496 | 12 |
8.060 | 16277 | 11 |
Last trade - 12.41pm 07/07/2025 (20 minute delay) ? |
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CGF (ASX) Chart |
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AGC
AUSTRALIAN GOLD AND COPPER LTD
Glen Diemar, MD
Glen Diemar
MD
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