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Fixed Income

The core of any good portfolio, learn about the key themes and opportunities in fixed interest.

Fixed Income
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Metrics Income Opportunities Trust (MOT) Entitlement Offer Open

MOT aims to provide monthly cash income, preserve investor capital, and manage investment risks while seeking to provide potential for upside gains through investments...
Livewire Exclusive
Livewire Markets
Fixed Income

Macro and policy trends remain key drivers of fixed income volatility

With inflation top-of-mind for investors, we believe the Federal Reserve’s reaction function will likely be a key driver of real yields, the dollar and risk markets...
Adam Grotzinger
Neuberger
Fixed Income

New 2.78% pa ANZ hybrid (ANZPJ) looks to be paying a 15-22bps new issue concession

So ANZ have launched a new 7 year hybrid (ASX: ANZPJ) to replace their maturing $1.61bn existing hybrid (ASX: ANZPE), which it has announced will be repaid on 24 March...
Christopher Joye
Coolabah Capital
Fixed Income

The strong case for 50 basis point hikes

Jamieson Coote Bonds expects the Federal Open Market Committee (FOMC) to hike by 50 basis points to begin their hiking cycle at the March FOMC meeting on March 17th...
Charlie Jamieson
Jamieson Coote Bonds
Fixed Income

A top down guide to the HQLA-gap

We’ve previously published bottom-up technical notes on Aussie bank demand for government bonds, which is akin to a new form of quantitative easing or QE (replacing...
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Matthew Johnson
Matthew Johnson
Coolabah Capital
Fixed Income

The RBA’s window to hike interest rates

The Reserve Bank of Australia’s (RBA) balance sheet tightening in 2023 may frame its window to hike rates, since it gives a natural pause to see the effect of...
Kate Samranvedhya
Kate Samranvedhya
Jamieson Coote Bonds
Fixed Income

Powell Giveth, Powell Taketh

In 2022 we expect volatility to increase as a function of central bank liquidity draining from the system. In parallel, we expect inflation to remain persistent, as we...
Charlie Callan
BondAdviser
Fixed Income

Another new puzzle: bank senior spreads vs government bonds

Back in August and September 2021 we noted a very odd anomaly: for the first time, 5-year major bank senior unsecured bond spreads were trading in line with, or at...
Dr Stephen Parker
Dr Stephen Parker
Coolabah Capital
Fixed Income

RBA ends QE and pushes back on rate hike

The RBA announced an end of QE and kept interest rates on hold as they wait to see stronger wage growth. If inflation continues to rise faster than forecast, and the...
Darren Langer
Yarra Capital Management
Fixed Income

Bank balance sheets expanding faster than expected with implications for liquidity needs

Yesterday, APRA released data for the banking system that revealed that balance sheets are growing very rapidly. Specifically, total bank resident loans/leases grew at...
Dr Stephen Parker
Dr Stephen Parker
Coolabah Capital
Fixed Income

Holding Bonds Can Still Make Sense Even With Negative Yields

It is almost taken for granted by investors that one should be paid for lending money to a third party. Yet as central banks around the world struggle to ’normalise’...
Clive Smith
Fixed Income

Layer cake anyone? Just like that, corporate bonds look attractive again.

Can it be that parts of the credit market look attractive again? Firstly, daring to suggest any aspect of fixed income looks cheap at the moment is about as popular...
Andrew Canobi
Franklin Templeton
Collections

5 experts demystify the 10-year bond yield

The U.S. 10-year Treasury note is arguably the most important bellwether of global financial markets, especially when it comes to inflation. If the market expects...
David Thornton
Livewire Markets
Fixed Income

State government bonds transition from RBA QE to bank QE in 2022 and beyond...

Since 2014, banks have typically bought a large chunk of all new State government bond ("semi") issuance, with a peak of 49% in 2020. Our analysis suggests that as a...
Dr Stephen Parker
Dr Stephen Parker
Coolabah Capital
Fixed Income

Someone is wrong, and someone is right: Franklin Templeton's 2022 market outlook

2021 is likely to be a year many bond investors would choose to forget. The benchmark Bloomberg Global Aggregate Index declined around 4.7% for the year, its weakest...
Andrew Canobi
Franklin Templeton
Fixed Income

The outlook for swap spreads

One of the larger fixed-income anomalies observed in 2021 was the record increase in the spread between interest rate swaps and Commonwealth government bond yields,...
Matthew Johnson
Matthew Johnson
Coolabah Capital
Fixed Income

Fixed income is changing — and blending private and public credit makes good sense

As we noted in part one of our recent primer on private and public credit markets, Public and private — perfecting the blend, the asset class of fixed income has...
Pete Robinson
Challenger Investment Management
Fixed Income

You can try to kill inflation, but you might kill the economy too

Markets have a huge amount to deal with into 2022, with three major policy changes likely across the year. Individually, any one of these three policy changes would be...
Charlie Jamieson
Jamieson Coote Bonds
Fixed Income

Aussie bank bond supply shock finally arrives

Australian banks are not simply going to repay the $188 billion they borrowed from the RBA, under the Term Funding Facility, when repayment falls due in 2023 and 2024....
Christopher Joye
Coolabah Capital
Fixed Income

NSW completes first $1 billion of $11 billion bond buy-back (QE) program

Last week NSW's investment and debt issuance agency, TCorp, announced that it had completed the first $1 billion of its proposed $11 billion of bond buy-backs using...
Christopher Joye
Coolabah Capital
Fixed Income

CBA prints monster $4bn bond, biggest Aussie credit issue ever

Commonwealth Bank's recent $4 billion bond is the first big issuance of 2022, and the largest of its type in Australian history. It dwarfs the previous record holder...
Christopher Joye
Coolabah Capital
Expert Insights

The good, bad and ugly of wholesale lending risk

Some forms of risk you want in your portfolio. Others, you should want no part of. When it comes to wholesale lending, bad risk generally means concentration, or...
Livewire Exclusive
Livewire Markets
Fixed Income

CBA mandates first 5 year senior major bank bond deal in A$ since the closure of CLF

One of my favourite bond issuers, CBA, has just announced a mandate for a new fixed-rate and floating-rate, benchmark 5-year senor bond issue in Aussie dollars. This...
Christopher Joye
Coolabah Capital
Fixed Income

A sustainable future demands more than greenwashing

Given the costs associated with moving to an environmentally sustainable future, the ability of entities to access appropriately priced capital to enact change becomes...
Clive Smith
Fixed Income

NSW shocks by pulling $20bn rabbit out of its hat

In the AFR I write that NSW premier Dominic Perrottet and new Treasurer Matt Kean have presided over one of the most extraordinary budget turnarounds in the history of...
Christopher Joye
Coolabah Capital
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