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Fixed Income

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

Fixed Income

Interview on where hybrids sit in a portfolio

In this interview with Pinnacle's Gerald Willeston I discuss the role bank-issued hybrids can play in a portfolio relative to (1) global high yield bonds and (2)...
Christopher Joye
Coolabah Capital
Fixed Income

Fed to go negative?

Before I dive into this, it’s important to understand why people are starting to think about the idea. The Fed Funds 12 contract (FF12), which is the market’s...
Chris Rands
Chris Rands
Yarra Capital Management
Fixed Income

Who will pay?

As everyone ponders how all economies move into the next phase of Covid-19 - some in the financial markets are starting to think about, how are the shutdowns going...
Mark Todd
Mark Todd
Bank of China
Fixed Income

Catching the credit reset

While the ongoing COVID-19 pandemic is tragic and has been incredibly disruptive to billions of people around the globe, it has provided credit investors with a speedy...
Phil Strano
Yarra Capital Management
Fixed Income

Australian Credit is strapped to a 60% V-Shaped Rocket

The Australian Treasury expects that 60% of the economy can be recovered once we achieve Stage 3 of National Cabinet’s re-opening plan. This correlates with the RBA’s...
Ken Liow
Realm Investment House
Fixed Income

Credit is Normalising, But…

Credit securities, both in Australia and globally are getting back on their feet. The bookbuilds this week of $1 billion of corporate debt by Woolworths, $1.25 billion...
Jonathan Rochford
Narrow Road Capital
Fixed Income

Where hybrids sit in a portfolio (and hunting housing bears)...

In the AFR today I explain why ever since I have pulled out my empirical “shotty”, an intellectual 12-gauge, the housing bears have started running for the hills. In...
Christopher Joye
Coolabah Capital
Fixed Income

Non-financials scream value

SWINGS AND ROUNDABOUTS COVID-19 has caused significant swings in pricing among almost all asset classes. Much of the pricing action intuitively makes sense, some of...
COL
+3
David Gallagher
David Gallagher
Artesian
Fixed Income

Why capital protected, private debt makes sense right now

Defensive, capital-protected, private debt is becoming increasingly appealing to investors as a viable asset class as markets work through the impacts of the COVID-19...
Bob Sahota
Bob Sahota
Revolution Asset Management
Fixed Income

Woolworths' senior bond looks expensive

Woolworths (WOW) has launched new 5 year and 10 year senior bond issues, which are expected to be large in size given it has over $2 billion of debts maturing in 2020...
Christopher Joye
Coolabah Capital
Fixed Income

RBA Cash Rate: From Crowning Glory to Fight For Survival

The Reserve Bank of Australia’s cash rate, once its crowning glory, is at risk of becoming obsolete as a sharp surge in liquidity has resulted in interbank overnight...
Sophia Rodrigues
Sophia Rodrigues
Central Bank Intel
Fixed Income

Things have changed forever

While central banks have created a liquidity-driven rally in risk markets, we still think that the worst data is still ahead of us. Things have changed forever in...
Charlie Jamieson
Jamieson Coote Bonds
Fixed Income

High-yield bond market blows (again)

In the AFR today I write that the global high-yield (or junk) bond market is blowing up once again, schooling investors on why the interest rates on these securities...
Christopher Joye
Coolabah Capital
Fixed Income

Financial resilience of businesses still to be tested

It’s been a wild ride for credit markets these past few weeks. And while the illiquidity is still quite poor outside of government bonds (<10-years), it hasn’t stopped...
TLS
Chris Rands
Chris Rands
Yarra Capital Management
Fixed Income

The investment clock has turned to credit

COVID-19 has hit most investors’ portfolios hard and fast. With the initial impacts behind us, investors are turning their attention to the investment landscape...
Richard Quin
Bentham
Fixed Income

Credit crunch or crisis?

With an expected 10% contraction in GDP, rising unemployment, and inflation at the lowest level we’ve seen in decades, how has COVID-19 impacted credit markets and...
Nikko AM
Nikko AM
Nikko AM
Fixed Income

Exploiting mean-reversion in financial markets

In the AFR today I write that for those willing to fade the extreme moves in financial markets during March, April offered up an immensely profitable case of so-called...
+1
Christopher Joye
Coolabah Capital
Fixed Income

Repurchase Agreements: When do they count as leverage?

Repurchase agreements (‘repos’) are often used by fixed income managers as a means of adding value to portfolios. Despite their use in portfolios investors may be...
Clive Smith
Fixed Income

Aussie major banks look expensive

The recent volatility in global corporate bond markets has caused some long-standing pricing relationships to dislocate. In this piece we will highlight why a) US...
+1
David Gallagher
David Gallagher
Artesian
Fixed Income

A bearish outlook for the Australian economy

Lacklustre GDP and corporate earnings growth need not mean weak equity market performance. The reverse can be true too of course. Last year was a case in point and the...
Jasmin Argyrou
Jasmin Argyrou
Credit Suisse
Fixed Income

Virgin blow-up a disaster for high-yield corporate bonds, not bank hybrids...

I was surprised to hear the suggestion that the blow-up of Virgin Australia's ASX listed 5 year corporate bonds (or floating-rate notes) was somehow a disaster for the...
Christopher Joye
Coolabah Capital
Fixed Income

Virgin is Another Disaster for Listed Note Buyers

The listed Virgin Australia bonds (VAHHA) look set to go down as one of the worst investments ever to appear on the ASX. After being issued in November 2019, the bonds...
QAN
+2
Jonathan Rochford
Narrow Road Capital
Fixed Income

Fiscal is the new black (…until the bond vigilantes return)

Unprecedented global fiscal stimulus. Extreme monetary policy experiments. Yields at multi-century lows. Government bond markets are now at the precipice of a paradigm...
Gopi Karunakaran
Ardea Investment Management
Fixed Income

A liquidity event to be feared

Liquidity is difficult to define. It became a prominent topic in March as markets fixated on a possible ‘liquidity crisis’ or companies lacking ‘liquidity’. Typically,...
James Cielinski
Janus Henderson
Fixed Income

Record Australia Govt Bond Issue Despite Hedge Funds Getting Sidelined

By Sophia RodriguesThe Australian government created a record for a single bond issue, selling A$13 billion of the new 0.25% 2024 bond even after rejecting nearly 50%...
Sophia Rodrigues
Sophia Rodrigues
Central Bank Intel
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