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 […]
Why Fixed-Income Securities Play an Important Role Within Investment Portfolios
Understanding the important role which fixed-income securities play within investment portfolios is crucial for investors of all persuasions, regardless of whether income generation or capital growth is the primary objective. The 60/40 Portfolio The 60/40 portfolio has formed the bedrock of the modern investment portfolio for decades, and for good reason. Within such a portfolio, […]
Corporate Fixed Income Securities – What Are the Benefits?
The corporate debt market is one of the largest financial markets in the world, providing the means for large corporations to raise money directly from investors to fund their operations. While smaller organisations are usually limited to bank and/or non-bank lenders to acquire funding, larger organisations can bypass such intermediaries and raise funds directly from […]
Why Bond Yields Could Stay Higher For Longer
Despite rapid surges in interest rates to combat inflation, many economies are still running hot with very low unemployment and positive GDP growth. Despite 11 interest rate hikes, the U.S. economy continues to be the strongest performer out of the G7, as measured by GDP growth since pre-pandemic levels. Growth increased by 2.4% in the […]
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 […]