In our final article of the bond myths series we look at bond maturities and hybrids.
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.
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.
Trade opportunities
We've updated our Sample Portfolios for the month. June had all the excitement of a prize fight in the bond market as international and domestic data drove performance and activity.
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.