Capital stability and attractive income – why advisers should be considering corporate fixed income for client portfolios
One year ago, U.S. 10-year Treasury bonds were yielding 0.74%pa while today, they offer 4.61%pa – and coupon payments on corporate fixed-income securities are even higher. With widespread global economic and geo-political uncertainty, it’s unsurprising to see many investors rebalance portfolios in favour of asset classes which can provide a greater degree of stability and […]
ABE Weekly: Is Restrictive Policy Here to Stay?
Australian Bond Exchange Weekly Update Friday 13th October Key Points Australian consumer sentiment inches slightly higher U.S. inflation remains sticky at 3.7% Restrictive policy to remain in place: Federal Reserve Middle east uncertainty rattles markets but oil sells off IMF increases U.S, growth outlook forecast “Monetary policy slowing the growth of demand and inflation”: RBA’s […]
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 […]
ABE Weekly: ASX 200 Gains Evaporate as ‘Higher For Longer’ Paradigm Sets In
Australian Bond Exchange Weekly Update Friday 6th October Key Points New captain, same course – RBA holds again New lows for the ASX – 2023 gains mostly wiped Positive PMIs – U.S. manufacturing picks up while services remain in expansion U.S. job openings increase in August Hopes rise for Chinese stabilisation Rolls-Royce Reactors Global Cash […]
In a Higher for Longer Environment, Fixed Income Needs to be Considered
With inflation likely to remain higher for longer than expected, interest rates are also likely to remain elevated as central banks seek to prevent any resurgence of exuberance. For many investors, this environment is boosting the allure of fixed-income relative to global equities markets, and this is unsurprising given the current disparity between the available […]
ABE Weekly: Inflationary Pressures Persist as Australian CPI Turns Higher
Australian Bond Exchange Weekly Update Friday 29th September Key Points Australian CPI rises again to 5.2% in August U.S. GDP grows in-line with expectations Japanese inflation remains stable but elevated Oil makes fresh highs German consumer confidence ebbs Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate remains unchanged at 4.1%pa […]
Structuring client portfolios for a better retirement
When it comes to effectively structuring client portfolios for retirement, allocating investment capital to safer and less volatile asset classes is imperative. Fixed-income securities including corporate bonds can play a pivotal role in providing much-needed portfolio stability and predictable income, reducing some of the inherent volatility associated with equity investing. While fixed-income securities generally move […]
ABE Weekly: Rates To Stay Higher for Longer as Federal Reserve and Bank of England Hold
Australian Bond Exchange Weekly Update Friday 22nd September Key Points RBA considered another rate hike in September U.S. Federal Reserve holds rates steady again U.K inflation surprises to the downside prompting BoE to hold Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate remains unchanged at 4.1%pa The US cash rate […]
Financial Stability in Retirement: Why Advisers Should Consider Fixed-Income Securities For Clients
New research released last week revealed that the top concern for Australians aged over 50 was running out of savings in retirement. The results are somewhat unsurprising given both inflation and interest rates have surged since COVID-19 lockdowns. While inflation has begun to erode the purchasing power of savings, aggressive monetary tightening has slammed the […]
ABE Weekly: Higher For Longer? U.S. Inflation Increases As Federal Reserve Meeting Approaches
Australian Bond Exchange Weekly Update Friday 15th September Key Points U.S. inflation increased faster than expected in August as gas prices soar Australian consumer sentiment slides but jobs data reveals a resilient economy UK unemployment and wages rise as economy shrinks by 0.5% in July Financial concerns for retirees mount in Australia as cost of […]