What affects bond prices?
Two major factors cause bonds prices to fluctuate, interest rates and risk. Bond prices (not to be confused with bond yields) have an inverse relationship with both interest rates and risk. That means, as one goes up the other goes down. Risk and bond prices Generally, the higher the risk of a bond, the lower […]
Types of bonds & debt securities in Australia
There are only two types of bonds you can buy in Australia, but many different types of debt securities that also offer stable returns. Corporate Bonds These bonds are issued by private organisations, and can be bought either on the primary market or the secondary market. Typically bonds are issued when companies need more money […]
What are bonds and how do they work?
When a government, or a company, needs capital, it can issue debt securities and fixed income instruments (like bonds) to raise the necessary funds. When you buy bonds and other fixed income products, or hybrid securities, you’re lending money to the issuer (the government or the company that issues the bond). They then agree to […]
The Gift That Keeps on Giving….and Giving and Giving
Christmas is a time of joy and giving, and with interest rates currently sitting at higher than we have seen over the past several years, corporate fixed-income securities are undeniably proving to be festive investments. While it’s not possible to physically wrap a corporate bond and stick it under your Christmas tree, with highly attractive […]
Will 2024 Be The Year of Fixed Income?
With higher interest rates likely to extend well into 2024 and beyond, now is the perfect time to consider fixed-income allocations within client portfolios, especially as the prospect of a recession lurks. Anaemic Growth Apart from the U.S., most economies appear to be struggling with higher interest rates and elevated (albeit cooling) inflation. This is […]
2023 Reflections – A Year in review
As we approach the end of 2023, now is an opportune time to reflect on the year that was, and plan for the year ahead. With inflation continuing to cool across most major economies, the key question for 2024 and beyond is – how long will rates remain elevated? U.S. Resilience The year 2023 has […]
Playing Defensive With Corporate Fixed Income Securities
Corporate bonds and other fixed income securities have long been favoured by investors seeking a balance of portfolio stability and investment returns. Since the Global Financial Crisis (GFC) however, ultra-low interest rates had largely removed the attractiveness of the asset class – but today, we find ourselves in a very different environment, characterised by higher […]
Corporate Bonds Vs Corporate Bond Funds – What’s the Difference?
Investing in corporate fixed-income securities like bonds and market-linked notes can be a popular strategy for investors looking to boost their income. However, with such a large universe of investment options available, it can be challenging for investors to decide which securities to include in their portfolio. As a result, some investors simply opt for […]
Reasons to Invest in Corporate Fixed-Income Securities – Right Now
In today’s highly uncertain and volatile climate, corporate fixed-income securities, including bonds, provide investors with the ability to diversity their portfolio from equities, while also securing a regular and stable income stream. In this article, we outline 3 key reasons why investing in corporate fixed-income today could be beneficial for your portfolio right now. Reliable […]
Hiding in Cash – When Defensive Becomes Expensive
With persistent uncertainty in global markets, it’s unsurprising to see increased demand for cash and cash equivalents, especially given short-term money markets are currently yielding circa 5.45% pa. However, while cash undoubtedly has an important and irreplaceable role to play as part of the investment mix, it shouldn’t be perceived or used as a substitute […]