General
New issues update
There are a handful of existing bonds in the Over-the-Counter (OTC) market that have franking credits attached to the coupon payments. In this article we discuss how the coupon distributions are typically paid on these fixed income instruments.
Where some asset classes are inflexible with the timing of distribution payments, paying only at maturity or following half-yearly or yearly results, the many different issuance dates of bonds allows for regular payment schedules.
Trade opportunities
We've updated our Sample Portfolios for the month.
General
New issues update
In the final article of the series, we round out the rest of the risks we typically consider, being which includes liquidity and foreign exchange (FX), as well as look at how to appropriately size the various positions of each bond within the portfolio.
Trade opportunities
The current portfolio yields an indicative 5.19%* to the assumed maturity dates with an approximate $206k spend.
On average an investor is paid a premium for participating in new issues, making it more attractive to purchase in primary or soon after. In this article we highlight the opportunity and how investors can achieve better returns as a result.
General
New issues update
In this second article of the series we will delve into the two main risks faced by bond investors – the risk of not being paid back – or credit risk – and the risk of the market price of your bond investment moving due to a change in the interest rate or yield of the bond – called interest rate risk.