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 […]
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 […]
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 […]
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, […]