bonds

With historic levels of volatility being experienced in even the lowest risk asset classes like Government Bonds, we thought it worth providing a refresher on the capital structure of modern-day corporates and more importantly banks. We will also provide a short summary of the difference between a ‘normal’ bond and the unfortunately named ‘junk bond’….

The toughest asset sector in an investment portfolio is the fixed income. Putting aside the difficulties in convincing an investor to have an allocation to fixed income when the conversation is sprinkled with mind-numbing terms such as duration, curves, and spreads, the even greater problem is low yields. Blind Freddie (rubbery etymology, with likely reference…

Investors and SMSF trustees looking to diversify away from low interest rate term deposits in search of fixed income strategies now have greater access to Australian bonds. Bond investing enables investors to diversify income sources and is a defensive strategy to reduce equity portfolio risk. Typically, Australian investors have less invested in fixed income than…

Sustainability focused investing has been gathering pace over the last decade, with equity funds attracting a lion’s share of interest from investors focused on ESG.  According to IMF data as of mid-June last year, fixed income strategies account for less than one-fifth of the assets under management.  Yet, the bond market is almost double the…