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A conventional approach to “risk” in fixed income is the idea of a single obligor default risk, i.e. the risk of an individual borrower failing to repay amounts to a lender when they are due, resulting in a potential loss to that lender. This risk is generally well understood...

Think of the last time you made a large purchase, such as a car, house, or even a TV. You would have compared products before you made your decision. In the investment world, bond yields are used as a key comparison in the valuation process for many different assets and...

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...

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...

Barry Ziegler, Head of Fixed Income at Bell Potter talks about his fascinating career and experience. Barry was involved in bringing the first retail hybrid, the National Australia Bank NABHAs to market 21 years ago, and gives us his views on the state of the hybrid market. What first attracted...

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...

Credit ratings are important indicators of risk and return in fixed income markets. They give investors an indication of the perceived future risk they are taking and measure the perceived risk of future failure to pay promised income or capital at maturity. A high credit rating, in the AAA, AA or...

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...

Gold has been having a dream run, performing exactly as it should in stressed markets. The yellow metal is up around 30 per cent in six months (even allowing for a mid-week swoon on the back of profit-taking ). Six months ago it was trading at US$1,474 per ounce -...

The COVID-19 pandemic upended financial markets and delivered an enormous shock to the global economy. It forced a rapid transition from late cycle into the downturn phase of the global credit cycle. Here, U.S.-based, Loomis Sayles & Company shares its analysis of the credit cycle and key factors they’re...