At An Inflection Point – Where Next For Interest Rates?
With last week’s CPI figures showing inflation is cooling at a faster rate than expected, another RBA rate hike seems unlikely (but not impossible) at tomorrow’s meeting. The million dollar question is, where next for interest rates? After 12 official cash rate hikes in 15 months, and with their full impact yet to be felt […]
Interest In Corporate Debt Climbing As Future Fund Doubles Domestic Exposure to $1 Billion
With fixed income assets now offering their highest yields in over a decade, institutional investors are significantly increasing their exposures to the asset class. Just last week Australia’s sovereign wealth fund, the Future Fund, announced it had doubled its domestic corporate debt exposure to $1 billion while AustralianSuper, Australia’s largest super fund also confirmed it […]
Exploring Investing In bonds: strategies and returns
Investment bonds, particularly corporate bonds, are a popular avenue for investors seeking stable returns and diversification in Australia. These debt securities play an important role in the capital market. They do this by enabling companies to raise funds for various projects while allowing investors to earn a fixed income. In this article, we will learn […]
Optimising Client Portfolios In Retirement: The Unique Role Of Corporate Bonds
From goods and services inflation to surging energy costs, a retiring couple today needs more than $70,000 a year to live comfortably, while an individual needs just over $50,000 a year, according to the Association of Superannuation Funds Australia (ASFA). For investment advisers, this underscores the critical importance of structuring and managing multi-asset portfolios which […]
Funding Retirement with Fixed Income
When you reach retirement age, it’s important to ensure financial stability. Bonds may be a suitable investment for retirement planning. With corporate bonds, you can generate passive, predictable income to fund your golden years. Bonds can provide regular income via regular coupon payments throughout retirement. This makes bonds a better choice than other investments with […]
Investor risk appetites – where corporate bonds fit
The 60/40 portfolio model has been a mainstay of the investment world for decades, and for most of that time it has served investors very well. It calls for 60% of a portfolio to be allocated to equities to drive growth, and the remainder to be devoted to bonds to provide stability when financial markets […]
De-mystifying Bond Yields: A Comprehensive Guide for Beginners
Bonds are a popular investment options that offer lower risk compared to shares. When you invest in a bond you are essentially lending an entity such as the government or a corporation. The government or corporation will make regular payments, called coupons to you throughout the term of the bond. In Australia, several types of […]
Bank Bonds Explained: Why is there such a demand for hybrid securities?
When you purchase a bond, you are providing funds to the issuer, whether it’s a commercial bank or the reserve bank. The bond issuer is obligated to repay the investor the face value of the bond (corporate bond, bank bond , government bond, or hybrid) on a specified date and to pay regular coupon payments, either […]