Education (basics)
We have put together this article to help you understand the role bonds play in retiring with a passive income, whether you're thinking of the ideal retirement, planning for retirement, or have retired. In retirement planning, bonds should be a cornerstone investment, providing regular interest payments and returning your principal investment at maturity. This stability forms the bedrock of a passive cash flow strategy, allowing retirees to sustain their lifestyle and meet essential expenses regardless of market volatility.
Education (basics),Education
In this article, we take a look at the Semi-Government Bonds, who sells and buys them, what types of bonds are available, yields, and advantages and disadvantages of Semi-Government Bonds.
Education (basics),Education
In this article, we look at how best to construct a balanced portfolio through the inclusion of fixed coupon, or floating rate notes and inflation-linked bonds and the benefits each type of bond offers.
Education (basics)
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.
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.
Opinion
In this series, we previously discussed how credit ratings assist wholesale clients in assessing bond risks. This edition focuses on FIIG-arranged unrated primary deals available exclusively to wholesale clients. FIIG's mission was to meet the demand from investors for higher yields amid declining interest rates and provide growth opportunities for mid-sized corporates previously excluded from capital markets. To date, FIIG has arranged 75 unrated bond issues, offering attractive returns and resilience compared to high-grade bonds.
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.
Opinion
The global economy is experiencing unique business and interest-rate cycles due to factors such as COVID-19-related supply shortages, extensive monetary and fiscal support, and high inflation. Investors are watching closely for a potential shift towards fixed-rate bonds following historical patterns where bonds tend to rally after central banks end rate-hiking cycles. Despite concerns about inflation volatility and other factors, the yield curve's upward slope in Australia presents opportunities for longer-duration bond investments compared to other markets.
Opinion
In this article, the Deputy Head of Research, Garreth Innes discusses the divergence between equity and bond markets and its implications for portfolio positioning in a risk-on or risk-off environment. The article explores factors influencing the yield curve and suggests that diversified portfolios and long-term asset allocation are more important considerations than trying to predict short-term market movement.