Education (basics)
Duration in a broad sense is a measure of how long it takes for an investor to have their bond investment repaid through its coupon and principal payments. It is expressed in terms of years and will typically be shorter than the tenor of the bond.
Opinion
Diversification is the easiest way to smooth volatility in a portfolio and therefore it has been brought sharply 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.
Education (basics)
The RBA keeps an eye on the Australian labour market as it is one of the most important indicators of the growth of the economy. Labour data is a direct target of monetary policy via the RBA’s employment mandate, but also an indirect one since it so clearly affects inflation dynamics. Over the last six months or so, the unemployment rate has trended sideways and still remains at extremely strong levels. While the unemployment rate remains low and inflation elevated, there is little reason for the RBA to cut interest rates.
Opinion
The Lucky 7 piece steps through four different possible outcomes for the RBA. The scenarios range from an unexpectedly high interest rate outcome to a rate cut cycle that would only occur if the economy materially weakened. In between are two much more likely scenarios that involve much less movement in the RBA rate.
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.