For the first time in my career I can honestly say that there is a clear and compelling reason for the RBA to raise rates – which I’ll outline shortly – but also a clear and compelling reason for the RBA to lower rates too.
FIIG achieved a median return for clients of 9.51%* over 2023-24. Returns in 2023-24 were strong for a number of reasons, and while past performance does not guarantee future returns, there are some strong reasons to suggest that returns in 2024-25 will once again be much higher than bond returns could achieve for much of the last decade.
Trade opportunities
The current portfolio yields an indicative 5.80%* to the assumed maturity dates with an approximate $205k spend.
General
New issues update
Trade opportunities
We've updated our Sample Portfolios for the month. We expected July to be a relatively quiet month as companies have their year-ends and usually wait until they have published their results before asking to borrow money in the bond market.
In our final article of the bond myths series we look at bond maturities and hybrids.
The yield target of government bond yields remains at a yield range of 5-6%, though the underlying components have shifted meaningfully. Specifically, government bond yields have climbed a tad while credit spreads have tightened aggressively.
General
New issues update
We’ve come to recognise some key concerns that investors quote when discussing a potential investment, some of which are based on false assumptions. So, if you’re still unsure about bonds, this series of articles which delves into the “Seven Key Myths” may help.
Asset-backed securitisation is a funding technique that allows the pooling of a large number of loans into a single financing vehicle, which then issues a number of different tranches of debt with varying seniority.