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...
There are different levels of debt or bond investment in companies. The level that you invest in will be dependent on the risk you are prepared to take and the return you want to achieve. The lowest risk and highest quality investment in any single company is secured senior debt...
Residential Mortgage Backed Securities (RMBS) are securities that help financial institutions fund operations. Simply, residential mortgages are pooled together and sold through a special purpose vehicle to investors in the over the counter fixed income market. The funds are then funneled back to the institution, so it can on-lend to...
Returns on investments just keep getting lower. As cashed-up investors look to alternative investments, fixed income funds have been beneficiaries. Fortunately, some funds have been sympathetic to investors’ plight and the need for income and dropped fees accordingly. However, others persist with a high fee agenda, are the fees worth...
Non-government debt, also known as credit or corporate bonds, is a key part of the broader fixed income universe. Historical performance data shows that credit has favourable risk and return characteristics that can complement an allocation to cash, government debt, and riskier assets such as equities. However, credit is a broad...

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Dozen Recommendations Made To ‘Unleash Power’ of Corporate Bond Market

Twelve recommendations have been made to support the development of a more active corporate bond market in Australia. The House of Representatives Standing Committee on...
Australian Bond Exchange IPO

Australian Bond Exchange Plans IPO Raise

The Australian Bond Exchange is preparing to join the ASX later this year with plans to raise up to $10.4 million through an IPO. The...

Five Reasons Why Fixed Income Still Matters

Key takeaways: Fixed income is the only asset class that demonstrates a low to negative correlation to risk assets. Fixed income provides highly efficient...

In-Depth Look At Fixed Income With ABX Co-Founder Markus Mueller

Elizabeth Moran sits down to talk with Markus Mueller, Co-Founder of The Australian Bond Exchange. Before co-founding ABE, Markus was Director/Branch Manager at Morgans/Reynolds,...
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...