Education (advanced)

Education (advanced)

Managing risk in your high yield bond portfolio

High yield bonds can play an important part in a portfolio providing much needed higher income, particularly in a low interest rate environment. The most important way to hedge against associated risks is to diversify. We explore key risks and other considerations for building and managing a portfolio of high yield bonds.

Education (advanced)

BBSW changes complete

This week the ASX began calculating the Bank Bill Swap Rate (BBSW) using real transactions at traded prices. This is an important benchmark used in pricing and revaluing a wide range of financial instruments including mortgages, corporate bonds and derivatives

Education (advanced)

Bond yields for direct bond investors

Bonds are usually a very simple investment. In their most common form you lend your funds to a company or a government, and in return they pay you interest on set dates and return capital at maturity. But some bonds and hybrids have call dates which can add a level of complexity when quoting a yield

Education (advanced)

BBSW evolves as major banks are fined

This week, the big bank rate rigging case returns to court. Rate setting scandals have rocked global financial markets over the last few years. The setting of BBSW, one of the most important benchmark rates for Australian investors and borrowers, has been evolving to suit the times

Education (advanced)

Floating rate notes

Bonds come in all shapes and sizes. Floating rate notes largely remove interest rate risk and make great alternatives to deposits as interest is adjusted on a monthly or quarterly basis

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