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...

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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...
xtb liquidation

XTB Corporate Bond Issuer In Liquidation

Liquidators have been appointed to the two companies behind the XTB range of corporate bond ETFs following Equity Trustees suspending redemptions last month according...
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...
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ANZ Launches ANZ Capital Notes 9 Offer

ANZ Bank has today launched its Additional Tier 1 capital security offer, ANZ Capital Notes 9, seeking to raise around $1 billion. At the same...
IAG capital notes 3

IAG Announces Margin On Capital Notes 3 Offer

Insurance Australia Group this week announced the offer of Capital Notes 3, seeking to raise A$300 million. The offer is part of IAG's capital...