How do you calculate risk vs reward? Comparing the risks of bonds and shares.
Investing in any asset will always carry some kind of risk, which is why the risk/reward ratio is so popular with traders and investors in assessing the best investments for their specific situation. Whatever type of asset you choose to invest in, there is always risk associated, you just need to make sure you get […]
Why are interest rates going up? The RBA Cash Rate Explained
Today, the RBA decided to leave the cash rate unchanged at 4.1%. Raised a total of 4 percentage points since May 2022, the cash rate is now the highest it’s been since it was 4.25% in April 2012. Rising interest rates have caused many to start educating themselves on how the RBA cash rate works, […]
Fixed Income & Bonds: A Comprehensive Guide For Beginners
The key thing to remember is that wherever you decide to invest your money, there is always risk involved. You just need to make sure you get paid for the risk with your returns. Generally, equities (shares/stocks) are high risk, high return, term deposits are low risk low return, and fixed income investments like bonds […]
What is the mortgage cliff and why does it matter?
Over 850,000 Aussies on fixed rate mortgages around 2% will soon be facing variable rates of around 6%. To understand the fixed-rate mortgage cliff in Australia in 2023, there are two key concepts you need to understand. The first is how COVID-19 fostered the lending of “free money” and encouraged borrowers to lock-in fixed-rate […]
The truth about inflation; is it stealing your savings?
“Inflation is caused by too much money chasing after too few goods” – Milton Friedman The spate of inflation wreaking havoc on the global economy is causing a cost-of-living crisis across Australian, UK, U.S. and EU markets. Central banks in each of these developed regions have been raising cash rates to fight the rising cost […]
Are shares riskier than bonds?
Bonds vs Shares, What’s the Difference? When it comes to investing, most people have heard of shares, stocks or equities. These investments, which are actually all just different words for the same financial instrument, give investors a small piece of ownership (equity/stock) in a company or corporation. Bonds, debt securities and other fixed income investments, […]
Superannuation taxes set to double, making fixed income an attractive alternative
Big changes are on the horizon for superannuation tax, which could see investors flock to lower-risk investment markets like fixed income. From 1 July 2025, some superannuation account holders will have their headline tax rate doubled from 15% to 30%. Although this is still below the top marginal tax rate of 45%, the significant increase […]
CBDC vs Cryptocurrency, what’s the difference?
If you’ve been reading the financial news headlines over the past six months, it’s likely you’ve encountered the acronym CBDC. When it comes to dissecting the official explanations of financial concepts and their accompanying acronyms, it can take time to wade through the reams of academic information, intertwined with complex concepts and industry jargon, delivered […]
Real-time CBDC bond settlements closer than you think
Australian Bond Exchange Holdings Limited (ASX:ABE) (“Australian Bond Exchange” or “the company”) are excited to announce the successful test of the first near real-time Central bank Digital Currency (CBDC) bond settlement in Australia. Key Points First near real-time CBDC bond settlements executed using Australian Bond Exchange’s technology Australian Bond Exchange one of 15 use cases […]