red poppy
Opinion

Why it pays to participate in primary

Investors can benefit from participating in primary markets with premium, better pricing, and access. Market factors affect premium size, creating opportunities for higher returns. New Issues also offer improved accessibility.

Opinion

A big year for new issuance in FY23, what’s in store for FY24

FY23 was marked by significant new bond issuances in Australia, benefiting bond investors due to high interest rates not seen since the beginning of the last decade. Notable issuances included Bendigo & Adelaide's covered bonds offering AAA-rated security and attractive returns, Transpower's green bond supporting renewable electricity generation, and Tier 2 notes from various banks and insurance companies offering longer lock-in periods with appealing yields. Similar opportunities are expected in FY24, with elevated interest rates presenting a good time for investors to secure stable income and returns.

Opinion

Same yield, different risk

For the first time in over a decade, bond yields have exceeded equities' yields, presenting an opportunity for investors seeking income to de-risk their portfolios. Bonds offer a structural advantage with contractual payments, whereas dividends are discretionary and subject to economic conditions. Investing in lower-risk bonds provides the potential for higher income, and while there may be a sacrifice in capital growth in certain economic scenarios, the move remains attractive.

Opinion

Achieving better returns through switching bonds – and why yield should always be the focus

Bond investors can enhance overall returns by trading positions before maturity, focusing on the yield offered rather than the capital price as a key factor in assessing switch opportunities within their portfolio, recognizing the interrelation between yield and capital price encapsulated in a single yield number. This flexibility allows for switching from lower-return bonds to those with the potential to deliver greater total returns, enabling continuous improvement of investment outcomes in response to evolving opportunities.

Opinion

The importance of portfolio diversification in 2022

Soaring inflation, rate rises and recession fears have fuelled market volatility and uncertainty, bringing the importance of portfolio diversification to the forefront of investors’ minds. Now is the perfect time to assess both the make-up of your portfolio and risk exposure within the portfolio.

Opinion

Opportunistically adding Longer Dated Bonds

With Central Banks raising interest rates after years of ultra-loose monetary policies, some investors have shied away from adding longer dated fixed coupon bonds, which are more sensitive to interest rate movements. However, with yields higher, the attractive returns on offer makes them a compelling inclusion in portfolios. Here we discuss why now is the time to be considering longer dated fixed coupon bonds.

Opinion,Commentary

The expansive service offering for retail investors

Since 2021 we have steadily expanded our retail product offering as new attractive opportunities present. Now with more than double the number of bonds on offer, and at even higher yields, it’s a rewarding time to be a retail client at FIIG. Here we discuss the broad product offering and the added resources that come with it.

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