The Federal election and the eloquent speeches afterwards by the two party leaders, reinforces our stable democracy and that Australia is a good place to invest.
Equally, compulsory superannuation has meant we have funds to invest.
This week, we report on several new investment options:
- Betashares has introduced a range of defined income ETFs
- Apollo Asset Backed Credit Trust offered by Channel Capital
- Metrics has expanded its established real estate debt strategy to include retail investors.
I’ve been reading about banks cutting term deposit rates. All four majors now have rates beginning with a ‘3’ for 12 months, although Westpac has a special 11-month, 4.2% fixed rate offer. NAB Chief Economist, Sally Auld expects a 50 basis point cut this month, followed by 25bps in July, August, November and February 2026, taking the cash rate to 2.6% by February.
With trimmed mean inflation now sitting in the 2-3% target band, that final rate looks about right. The risk now has swung to the downside, with rates potentially going even lower. If you’ve got cash to invest, fixed rate bonds with long duration are attractive. Have a look at our ETF Finder, comparing 85 Fixed Income ETFs to help you understand what’s available.
Australia’s housing market is a concern, but in an interesting development, AMP is offering a 10-year, interest-only mortgage to eligible borrowers including retirees, pre-retirees, investors and owner-occupiers.
I read a very insightful article from ETF Stream this week about the dangers of putting private credit into an ETF. The note also gives some pointers as to risks in general and worth a read if you are thinking about investing.
Emma Lawson from Janus Henderson is back with her popular monthly Australian fixed income summary.
Donald Trump is trying to push US Fed Reserve Chair, Jerome Powell into cutting interest rates, resigning or both, and Deborah Cunningham from Federated Hermes has written an excellent article explaining what she thinks will happen with US rates and the upcoming FOMC meeting.
In other news, local direct bond dealer, FIIG Securities has been sold to AUSIEX.
Have a great week!
