Managing volatility with corporate bonds
Corporate bonds can play a key role in stabilising investment portfolios during periods of heightened volatility in financial markets. Not only do they exhibit lower price instability compared to equities, but as long as the issuer of the bond remains solvent, you will continue to receive fixed coupon payments until maturity. What are corporate bonds? […]
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 […]
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 […]
Fixed Income & Bonds: A Comprehensive Guide For Beginners
There’s been a lot of noise recently in the market about fixed income and bonds, as advanced economies battle with high, sticky inflation, a lack of housing supply, and rising interest rates. The key thing to remember is that wherever you decide to invest your money, there is always risk involved. You just need to […]
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, […]
Take care of your financial well-being with defensive investments in Australia
If you are ready to take care of your financial well-being and want to learn about defensive investments, this article is for you! Why is your financial well-being important? Maslow’s hierarchy of needs suggests that the most basic physiological and safety needs are needed to be met before we can fully enjoy life. […]