The recent risk market rally reflects hope for a sharp recovery as economies slowly reopen. However, bond markets are once again diverging from equities and predicting a different future. Call me biased but my bet is on bonds. Bond markets are seldom incorrect in the long run. For now investment grade credit is best placed to navigate risks without foregoing too much return.
Asmita Kulkarni discusses why inflation linked securities should be in every fixed income portfolio. These securities protect investors against inflationary pressures while maintaining a steadily growing income flow.
Investors are having to adjust to the riskier nature of equity investing as more and more companies reduce, cancel or defer dividends. Those with a truly diversified portfolio should however be cushioned from this loss in income, thanks to the regular cashflow from a low risk bond portfolio.
The coronavirus induced volatility has really brought 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.
Like the broader corporate bond market, RMBS is also responding to market uncertainty. Structural support features and government assistance for borrowers will provide short-term support for the asset class.
The RBA’s QE announcement focused on ensuring flow of credit to businesses and households via ADIs.
Volatility has returned to the market disrupting the upward trend of higher share prices, so what does this mean for bond portfolios?
We are only a month into the new year and already there have been a number of events that we classify as remarkable in nature, which will have long lasting effects on financial markets.
A look at events that affected Australian bond investors over 2019 and reflect on the good, the bad and the ugly.
We have added bank Tier 1 securities and discos to our offering in addition to broadening our product suite.