ABE Weekly: What Could Possibly Go Wrong…
Australian Bond Exchange Weekly Update Friday 23 February Key points Introducing ABE’s latest investment offering – Hertz Corporation Economic uncertainty remains high – RBA meeting minutes China slashes key mortgage rate to support slumping real estate values A deflationary spiral Global commercial property is in trouble Equities ascend as economic expectations decline. Global Cash […]
Higher for longer – Why you should be considering Corporate Fixed-Income
With corporate fixed-income securities now offering some of their most attractive returns in over a decade, the opportunity cost of having no exposure for your client’s portfolios has become material. Since the Global Financial Crisis (GFC), artificially suppressed interest rates through quantitative easing have significantly distorted the dynamics of financial markets. For bonds and other […]
ABE Weekly: All Eyes on the RBA
Australian Bond Exchange Weekly Update Friday 3rd November Key Points War of words – all eyes on the RBA as IMF tips a rate rise Long way to go – Federal Reserve holds but cautions further hikes ahead Eurozone inflation shrinks – along with the economy Private credit growth in Australia flatlines but retail sales […]
The role of corporate bonds in retirement planning for your client
Your clients are almost certainly familiar with equities and how they can generate an income in retirement. However, they probably know very little about the role that corporate bonds can play in mapping out fixed income streams in retirement planning. Yet these instruments feature heavily in the financial plans of US and European investors because […]
Virgin Airlines’ bond highlights why rigorous selection is so vital
Buyer beware: why it pays to be cautious when selecting bonds for a portfolio The losses suffered by Australian investors in a bond issued by Virgin Airlines underlines the importance of conducting extensive due diligence before investing in any issue. The misfortunes of investors in a bond issued by Virgin Airlines in Australia in 2019 […]
Staying Ahead of the Curve: How Technology is changing Corporate Bond Investing
Why technological advances could prove a game changer for corporate bond investors Traditionally resistant to change, the corporate bond market is now embracing new technologies that should make it easier for advisers to better serve their clients. The pace of technological progress is accelerating, and profound developments have already taken place in financial services. The […]
Why Advisers should choose the Australian Bond Exchange
Why Advisers should choose the Australian Bond Exchange Building a balanced, diversified portfolio of corporate bonds can help your clients receive a regular, stable income. The Australian Bond Exchange can help you overcome the challenges associated with this process. On our website you can find numerous articles outlining the advantages of including corporate bonds in […]
What is bond duration and why do investors need to understand it?
Understanding bond duration and its impact on portfolio risk Duration is a key concept investors need to understand when investing in corporate bonds and building a portfolio. Quite simply, duration measures the sensitivity of a bond to a change in interest rates. It is measured in years and will vary according to the bond’s maturity […]
The impact of interest rates on corporate bonds: what financial advisers need to know
How interest rates exert a key influence over bond prices and their yields Once a corporate bond is issued, it can be traded on financial markets. Just like equities, bonds will see their prices fluctuate – although bond prices tend to be far more stable than those of equities. A number of factors affect the […]
ABE Weekly – UK raises the cash rate again
Australian Bond Exchange Weekly Newsletter Friday 31 March 2023 The Weekly PDF Version Source, Australian Bond Exchange Key points: The “Organisation for Economic Cooperation and Development” (OECD) growth expectation for Australia is 1.8 per cent for 2023 (AUS) The February “Consumer Price Index” (CPI) slowed to 6.8 per cent from 7.4 per cent last month […]