Knowledge Series
In this article FIIG's research team discusses the analysis of the FY23 reporting season, where insights into credit portfolio positions and future expectations are provided. In the analysis, over 30 credits were covered, including Australian REITs, focusing on aspects such as devaluations, interest rates, and market perceptions. Despite potential risks, there is confidence in the stability of these REITs, mainly due to their investment-grade ratings, manageable gearing, and covenant compliance.
Trade opportunities
The current portfolio yields an indicative 6.33%* to the assumed maturity dates and is an approximate $203k spend.
Opinion
Investors can benefit from participating in primary markets, where new bonds are introduced before secondary market trading. This participation often offers a premium, better pricing, and enhanced access, resulting in more attractive entry points for investors. Market conditions, demand, and issue size influence the size of the premium, and this premium can provide opportunities for investors to lock in higher returns, either through continued holding or selling for capital gains. New Issues also offer better accessibility compared to some scarce bonds in the secondary market.
Education (basics)
Diversifying fixed income portfolios across different categories such as companies, industries, and countries helps reduce specific risks. Diversification not only lowers risk, but also enhances long-term portfolio performance, drawing on the theory introduced by Nobel laureate Harry Markowitz. A well-diversified bond portfolio can lead to smoother volatility, improved returns, and reduced risk in uncertain economic and market conditions.
Trade opportunities
The beauty of a bond portfolio is no matter what the economic outlook, the portfolio can be constructed to best suit the conditions. Here we look over three bond portfolios that have been created to optimise performance in different economic environments: sustained inflationary pressures, recessionary concerns and also a balanced portfolio for all weathers.
Trade opportunities
The current portfolio yields an indicative 6.40%* to the assumed maturity dates and is an approximate $205k spend.
Trade opportunities
The current portfolio yields an indicative 6.53%* to the assumed maturity dates and is an approximate $205k spend.
Trade opportunities
The current portfolio yields an indicative 6.01%* to the assumed maturity dates and is an approximate $203k spend.
Education (basics)
IABs offer protection against inflationary pressures, making them a crucial allocation during times of high inflation, but also offering many other benefits too. Here we discuss how they work and why they’re considered a core portfolio holding.
Trade opportunities
The current portfolio yields an indicative 5.91%* to the assumed maturity dates and is an approximate $212k spend.