Advanced Theory & Practice of Bonds

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1-2 December 2021

Two-day immersive course on bonds designed for private bankers and advisors. 90% funding* available to eligible company-sponsored candidates.

Rolls-Royce (RR) reported earnings showing a £4bn ($5.6bn) underlying loss before tax for 2020, worse than expectations of a £3.1bn ($4.3bn) loss. Underlying revenues fell 24% to £11.8bn ($16.5bn). The losses included a £1.7bn ($2.4bn) underlying finance charge related to the FX hedge book reduction, due to lower USD receipts in 2020. As per RR’s 2019 annual report, underlying performance excludes the effect of acquisition accounting and business disposals; impairment of goodwill and other non-current assets where the reasons for impairment are outside of normal operating activities; exceptional items; other items which are market driven and outside the control of management. The company reported net debt of £1.5bn ($2.1bn) excluding leases, expected to rise to ~£4bn ($5.6bn) this year before falling again thanks to disposals. They also showed liquidity of £9bn ($12.6bn) which includes £3.5bn ($4.9bn) in cash and £5.5bn ($7.7bn) undrawn credit facilities. The expect group free cash flow to turn positive in the second-half of this year from the current £4.2bn ($5.9bn).The company was downgraded two notches to BB- by Fitch last month with a negative outlook.

RR’s USD 3.625% 2025s were down 0.8 to 100.06, yielding 3.6% and their GBP 5.7% 2027s were higher by 0.3 at 109.3, yielding 4.1%.

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