In a market where risks have risen, diversifying within asset classes, particularly defensive asset classes, is just as important as having a sound mix of growth and defensive assets, writes Justin Tyler, Director, Daintree Capital.
Diversification is a central strategy used by asset allocators to lower a portfolio’s risk and...
Each month Fixed Income News Australia provides a wrap of all the latest bond issues and changes from around Australia.
Economic data
No RBA meeting in January, the cash rate remains at 0.75%
Devastating bushfires across five states, the Insurance Council of Australia says $800m in claims since September and...
Earlier this year, Australian Bond Exchange set up a joint venture with trading platform IRESS to allow financial advisers to transact over the counter bonds on the platform on behalf of their clients. In this way, advisers can track total portfolio holdings and benefit from the reporting being in...
Is my fund manager doing a good job?
Fund managers play an important role in the provision of secure retirements for millions of Australians. So, it is important to be able to assess a fund manager’s performance. It remains very common for market benchmarks to be used in this assessment...
As published in The Weekend Australian on 26 June 2020
In the frenzied final days of the sale of Virgin Australia, more than 5000 local bond investors suddenly found themselves centre stage.
The surprise departure of Cyrus Capital meant that for a very short time there were two remaining bidders for...
Socially conscious investors have been putting their money where their mouths are and starting a wave of investments in companies and funds that follow environmental, social and governance (ESG) criteria.
These criteria measure how a company performs as a steward of nature; manages its relationships with employees, suppliers, customers and...
“Bonds are the underwear in your portfolio – unexciting and not much thought about, but select the wrong pair and you’ll be surprised at just how uncomfortable you are.” - Dr William Bernstein
Like a good foundation garment, bonds should be the boring but predictable base of every investment portfolio –...
Undoubtedly, the easiest way to invest in bonds is by trying to find a fund that mimics your desired outcome. The fund could be a low cost, passive ETF that tracks an index or an actively managed, listed, or unlisted fund.
The fund manager manages the investments, deciding when to...
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...
High grade sovereign (or government) bonds remain as relevant as ever in an uncertain and complex market environment.
Today’s bond yields are indeed low, and some investors may be finding it difficult to justify a portfolio allocation to high grade bonds. However, research and experience shows that in periods of...
