It’s important for investors to periodically review their portfolios and make sure it is still fit for purpose and behaving as the investor intends.
Bonds can have a number of pre-determined milestones built into the documentation which are important for investors to consider, such as early calls, but there are also other events that can make changes to the way investors view a bond.
Trade opportunities
We've updated our Sample Portfolios for the month. Weak employment numbers in the middle of the month pushed yields lower but then a stronger than expected monthly inflation number pushed them back up again. We ended the month basically where we started.
Returns on bonds can be further increased when bonds approaching their maturity or call dates are reinvested ahead of time. We look at the benefits of actively managing maturities and early redemptions to get the most out of fixed income portfolios.
Trade opportunities
We've updated our Sample Portfolios for the month. Yields are up almost 0.40% across the curve, which has resulted in better yields on offer for new investors but lower prices for existing bond holders.
Trade opportunities
We've updated our Sample Portfolios for the month. March has been a relatively quiet month with yields trading in a relatively tight range, ending about 10bps lower, as the RBA has been on hold since November and the market consensus being the rate hike cycle has ended.
Trade opportunities
It’s been a topsy turvy month in the bond market with certain signs of inflation perking up their heads, particularly in the US, which has led to a repricing of the expected rate cuts to come this year, moving more in line with the US Federal Reserve officials forecasts and pushing yields higher.
In this note we highlight the opportunity and how investors can achieve better returns as a result of participating in new issues, along with attractive pricing and better access, making it more attractive to purchase in primary or soon after.
Trade opportunities
A month is a long time in markets, and it’s been at least that long since we updated the portfolios. It’s also been the summer holidays domestically which means a quiet time, and this has definitely been the case apart from one spike of activity around the new Santander bond. In the run up to Christmas interest rates fell quite a long way as the
end of the hiking cycle got some investors excited. Since then, the story has been a reversion of this excitement as some of the cuts began to be priced out again and yields rose.
Trade opportunities
November marked a turning point in the last nearly 2 years of fighting inflation with rising interest rates. The market began firmly pricing in the end of hikes and the start of cuts. This is mainly because historically central banks have held rates steady at their peak for no more than about 7 months on average before cutting them again, as economies run into a wall of higher borrowing costs.