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Fixed Income

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

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
Amova 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...
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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...
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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
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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
Fixed Income

A Chance to Reset in Debt

It’s often said of investing that a rising tide lifts all boats. However, this isn’t always true and the uneven bounce back in debt markets in the last two weeks has...
Jonathan Rochford
Narrow Road Capital
Fixed Income

There is no easy end to this

While markets try to look through 'peak virus' to a quick recovery, we believe that until we get a vaccine, or we get a herd immunity as a people, the virus is going...
Charlie Jamieson
Jamieson Coote Bonds
Fixed Income

Metrics portfolio update and market outlook

Andrew Lockhart, Managing Partner of Metrics Credit Partners, recently provided an update on the Metrics portfolios and the current Australian loan market conditions...
Metrics Credit Partners
Fixed Income

Maximising returns in a bond portfolio: Taking advantage of non-linearity is the key.

One of the key strategies employed within fixed income portfolios to add value is the maximisation of ‘carry and roll’. The successful utilisation of this strategy...
Clive Smith
The Rules of Investing

Navigating the COVID crisis

One of the biggest questions on many investors’ minds in recent weeks has been, just how bad will the economic contraction be? But Chris Rands, Portfolio Manager for...
The Rules of Investing
Livewire Markets
Fixed Income

The RBA’s buying spree

The RBA has been buying up big, purchasing around $36bn in government and semi-government bonds throughout March. But when is enough, enough and can these efforts...
Nikko AM
Nikko AM
Amova AM
Fixed Income

Buying time to sell − fixed income spreads come under fire

Fixed income is marketed to investors as a defensive asset class, as a general rule offering principal and income security combined with liquidity. That is the major...
Charlie Jamieson
Jamieson Coote Bonds
Fixed Income

Challenger commits to calling CGFPA hybrid

Challenger’s shortest dated hybrid, the $345 million Challenger Capital Notes (ASX: CGFPA), which has its call or repayment date coming up on 25 May 2020, has been...
Christopher Joye
Coolabah Capital
Fixed Income

Hybrid market developments

Since the ASX hybrid markets' all-time record 6.46% flash-crash on Monday, which was triggered by a completely incorrect news report that NAB had bailed-in its NABPC...
Christopher Joye
Coolabah Capital
Fixed Income

3 areas of the market that look cheap

There are two factors driving markets today, fundamentals and technicals. Fundamentally, the global economy is increasingly in shut down mode. This is temporary and...
PIMCO .
PIMCO
Fixed Income

No, NAB did not bail-in NABPC hybrid holders into equity...

There was an enormous amount of completely erroneous reporting, and resultant confusion, on NAB's repayment of the $1.34 billion owing under one of its hybrids...
Christopher Joye
Coolabah Capital
Fixed Income

RBA tries to calm markets

In response to the coronavirus epidemic, the RBA cut the cash rate on 19 March to 0.25% and announced a number of QE measures. In the long run, will the government’s...
Nikko AM
Nikko AM
Amova AM
Fixed Income

When the economy stops

The world has never been as globalised and interconnected as it is today, so when a pandemic such as COVID-19 hits, it’s an enormous challenge to contain. Government...
Jay Sivapalan
Janus Henderson
Fixed Income

Is the worst-case scenario already in the price?

The bond market has a reputation for seeing what is coming before other asset markets begin to adjust. While equity markets embarked upon a feverish rally in January...
James Marlay
Livewire Markets
Fixed Income

More Write-downs and Forced Sales are Likely

The brutal hits taken by Australian equities (-10.9%) and hybrids (-6.9%) this week were obvious to anyone who picked up a newspaper. What might have been missed is...
Jonathan Rochford
Narrow Road Capital
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