Residential Mortgage Backed Securities are a popular choice for wholesale investors as they can choose the risk and return they seek and the securities offer a premium over similarly rated corporate bonds. Here we explore some basic features of these securities and outline what makes them different to vanilla corporate bonds
The RBA has cut the overnight cash rate (OCR) to the lowest level in history. With more rate cuts on the way and bond prices likely to rally further, we believe it is time for investors to start adjusting their expectation to a lower yielding environment.
The RBA has explicitly stated that it is open to cutting cash rates as early as June 2019, so what does this mean for fixed income investors?
The yield of a fixed rate corporate bond is made up of two components, a base interest rate and a credit spread.
Here we take a look at what's on offer in the ethical bond investment space
RMBS provide superior returns when compared to equivalent rated bonds and have the added benefit of natural risk reduction through amortisation
Often soundbites can generate uninformed comment and blow things out of all reasonable proportion. Here's a recent example
Labor’s proposed changes to franking credits will impact total income derived from hybrids
Find out if this year will be a good year for bond investors
Private clients like regular cashflows and capital preservation, which RMBS provide. Unlike fund managers, they are less concerned about mark-to-market price moves. Here we look at why higher rated notes of RMBS transactions remain attractive investments satisfying both these priorities