Fixed Income

Australian residential mortgage-backed securities (RMBS) provide a source of highly rated assets with consistent income generation. Two questions immediately come to mind when looking at them: how risky are they and how they should be priced? As will be discussed, RMBS are often maligned as being riskier than facts would... Show More

After being told how well the trade negotiations between China and the US had been progressing, financial markets were shocked when Trump ordered additional tariffs against China after a complete breakdown in negotiations. Further to this, Trump also threatened additional tariffs against Mexico for purely political reasons around immigration, further... Show More

Key Points - Banks have dramatically improved their capital positions in two main ways – firstly by lending more prudently, and secondly by increasing issuance of securities that create an additional line of defence for bondholders and depositors. - Australian banks are some of the few in the world that offer hybrid... Show More

After reading about where I’m seeing future problems for debt investments, it would be possible to think I’m pessimistic about the investment outlook for my clients. That couldn’t be further from the truth. On a global basis credit seems quite stretched, yet for an Australian manager opportunities in non-vanilla credit... Show More

Commercial Real Estate Debt is widely accepted as an asset class in the institutional and wholesale investment sector. Over the past ten years, Qualitas has created a number of discretionary debt strategies for private and institutional clients, offshore pension funds and family offices, before creating the ASX-listed Qualitas Real Estate... Show More

We have a special episode of the Complexity Premia podcast out today on the Game of Thrones-style battle between Presidents Trump and Xi over trade, which is intensifying by the day. This is arguably the first true super-power clash that we have seen since the Cold War. We also discuss... Show More

The search for income is no easy task in a world of low rates. And while many investors, particularly those nearing or in retirement, may skew their portfolio towards more familiar asset classes such as dividend-paying blue chips, they may not be aware that global high-yield bonds represent an exciting... Show More

Income helps provide a stable source of returns. Capital Group developed the Global High Income Opportunities strategy (GHIO) 20 years ago. Within this strategy, we look to invest in corporate high-yield and emerging market debt, as they usually offer significantly higher yields than developed market sovereign bonds, and the income... Show More

The process of banking often relies on the development of an ongoing relationship between the bank and the borrower. This relationship not only provides the bank with additional information but may impact on the pricing of loans. In turn this can create issues for investors purchasing such loans directly from... Show More

In today’s investment world there is so much choice available to investors when seeking to generate income. One proven investment strategy that is designed to provide stable sources of income over time is high-grade sovereign bonds. High-grade bonds are considered one of the ‘safest’ asset classes as the principal is... Show More