A yield curve shows the relationship between interest rates and the term to maturity. It plots interest rates on the y-axis and term to maturity on the x-axis. Importantly, interest rates should be taken from the same credit quality issuer and the same currency, as these other factors will influence...
By Mitch Reznick, CFA; Robin Usson, CFA; and Sophie Demare of Federated Hermes After record issuance in 2021, the Green, Social, and Sustainability bond market (GSS) has grown to a market capitalisation of just under US$2 trillion. The fastest growing security type in this market is the sustainability-linked bond (SLB)....
Companies that offer annuities are significant investors in fixed income assets. In this article, Aaron Minney, Head of Retirement Income Research at Challenger, dispels five annuity myths. Lifetime annuities provide a simple solution for retirees seeking income for as long as they live. The annuity income is income for life....
In this webinar, we talk with Anthony Kirkham who is the Head of Investment Management/Australian Operations for fixed income manger, Western Asset Management. The company joined The Franklin Templeton Group of companies in 2020. It has USD$491bn in assets under management. In our discussion with Anthony, we drill down...
Most investments have risks and before you invest it’s best to know and understand how the risks could impact your investment. Fixed income investments can be into companies you already know, such as Commonwealth Bank, BHP or Apple, so if you already follow a high profile company, may overcome an...
Over the last decade, Australia's lending landscape has transformed. Gone are the days when the "big four" controlled the vast majority of Australians' credit needs. We've seen an influx of Non-Bank Lenders (NBLs) to the market, increasingly providing technology-driven lending solutions that traditional banking models have difficulty competing with....
The Australian bank capital note market has long been favored by income investors and is worth around $30 billion. Recent issues mean it's worth examining capital notes, their features and why you would consider investing. Both Westpac and Macquarie Bank have recently been in the market with a capital notes...
If you think of a spread as something to put on your toast, in other words something additional, a credit spread is the extra yield on offer by investing in a higher risk security with the same term to maturity. A common base case or reference is to ‘zero risk’...
In this educational webinar, we sit down with James Austin, Chief Financial Officer at Firstmac, to deep-dive into the Residential Mortgage Backed Securities (RMBS) asset class. We discuss the history of RMBS, the issuers, the current size of the market, and how it endured the GFC and COVID. We...
Interest rate duration is a key fixed income concept, as it measures the sensitivity of a bond’s price to changes in interest rates (or bond yields). Duration risk stems from the fact that a bond investor makes a payment today in exchange for a series of future interest payments. At the...

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Family Falls Victim To Fake ANZ Bonds Website Scam

A NSW family has lost $500,000 through an elaborate scam involving a fake ANZ bonds investment website. According to a report by news.com.au, the family...
capital notes

Capital Notes – What Are They and Should You Invest?

The Australian bank capital note market has long been favored by income investors and is worth around $30 billion. Recent issues mean it's worth...
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Sri Lanka Plunges Into Foreign Loan Default

Sri Lanka’s long-running economic woes has now seen the country default on foreign debt repayments amidst rapidly growing political unrest in the country. Sri Lanka...
Torica Capital

Fund Managers Launch Torica Capital

Fund managers, Raymond Lee and Alwyn Hung, have launched Torica Capital, an experience fixed income and credit asset management group headquartered in Sydney. Torica will...
University of Tasmania Green Bond

University of Tasmania Green Bond Raises Record $350m

The University of Tasmania has raised $350m in what is the largest green bond deal by an Australian university. The green bond issue was in...