In this educational article, Elizabeth Moran shows how Credit Default Swaps can forewarn investors of trouble ahead. Large institutional investors with significant bond holdings will sometimes take out insurance against default and these contracts are known as Credit Default Swaps (CDS). The buyer of the CDS will pay a fee on...
Are we nearing the top of the interest rate cycle? Perhaps. One sign that might suggest we are close was this week’s announcement of October’s retail sales rates. Rates declined unexpectedly with spending down 0.2%, when it was projected to increase by 0.6%, perhaps a signal that the RBA’s cash...
If you are thinking about investing direct, then there are a number of factors you’ll need to assess. While many of the metrics will be similar to shares, they are some important differences. For example, growth is a crucial assessment when investing in shares. However, bondholders do not care if...
The desire to invest in bonds seems to be back in fashion again after a very poor 1H22. Rates are attractive and investors are flocking back to the asset class. If you are a first-time investor or thinking about reinvesting, you can invest direct in individual bonds or indirect, through...
Inflation and the cash rate continually hit news headlines at the moment, but are you aware of what is happening to one of our key interest rate benchmarks, the Bank Bill Swap Rate?  Practically every day, the rates are moving higher, which is good news for investors. The Bank Bill...
Recent new issues by NAB, Macquarie, and Ampol might have you thinking about adding capital notes, sometimes called ‘hybrids’ to your portfolio. In this article, we discuss the advantages and disadvantages to help you determine if they might be right for you. A capital note is a hybrid product and...
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...

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PODCAST: The Yield Adds Up – ABS and RMBS with Lauren Ryan from Thinktank

PODCAST: The Yield Adds Up – ABS and RMBS with Lauren Ryan from Thinktank

Asset backed securities (ABS), including residential mortgage backed securities (RMBS), provide relatively high, floating rate monthly income. Learn about the asset class, the risks...

Investors Hunt Down Income Amid Economic Turbulence

From Global X ETFs Product and Investment Strategist, Marc Jocum. Investors today face a challenging economic landscape. In the wake of the Covid-19 pandemic, central...
Buy Point for Fixed Income

Buy Point for Fixed Income

The US Fed held rates overnight. In this brief Q&A, Robert Tipp, Chief Investment Strategist & Head of Global Bonds, PGIM Fixed Income reviews...

S&P Default Rate Study

From Income Asset Management While yields have improved in the Australian BBB space, it’s also nice for investors to know their money is relatively safe. S&P...
Green Treasury Bond

Green Treasury Bond Roadshow to Commence

The Australian Government is planning to issue the first Green Treasury Bond between April and June 2024 and will shortly commence a roadshow ahead...