corporate bonds

Fixed Income
Kerry Craig

Investors are concerned about the deterioration of corporate debt quality, marked by lower credit ratings and a large share of covenant-lite issuance in the loan market. Credit is typically a non-recessionary asset class and should perform well so long as there is no impending recession, which at the moment looks unlikely.... Show More

Nick Reddaway

Given the sudden volatility in global markets at the end of 2018, we felt it was important to meet with fund managers we currently invest in and seek out potential new opportunities. So we commenced 2019 with an extensive research program meeting 42 investment managers over 4 weeks in Melbourne,... Show More

Macro
Alex Cowie

One of the most engaging parts of my role at Livewire is working with Australian fund managers to discuss their views and bring you great content. With over 400 managers now contributing to the platform, overseeing the content can feel like being at the epicentre of the market. So with... Show More

Elizabeth Moran

The recent by-elections should serve as a warning to investors reliant on franking credits for income. Significant swings to Labor while the Liberals stand by corporate tax cuts, increase the chance of a Labor victory and, with it, Labor’s stated policy of removing franking credit refunds to investors who do... Show More

Gopi Karunakaran

Sacrificing liquidity in return for additional yield can be attractive if the compensation is sufficient and the time horizon of capital is appropriate. But corporate bond markets are currently not providing sufficient compensation for growing illiquidity risk. Show More

Livewire Exclusive

At the height of the financial crisis, credit markets seized up and liquidity disappeared. In the aftermath of Lehman’s bankruptcy, this caused huge headaches for investors, institutions, and regulators. It may surprise you to learn then, that turnover in these markets is lower today than it was at the nadir... Show More

Elizabeth Moran

Investing direct or through exchange traded funds (ETFs), or managed funds has advantages and disadvantages; just like investing in shares, the decision depends upon the individual. While my preference is direct investment, the minimum needed is $250,000, making it difficult for smaller investors to access. Show More

Damien Wood

Investment prices keep rising. Valuations are now well beyond long term averages for many asset classes. Pundits are increasingly calling for a big correction. Fears of overvaluation is also found in the corporate bond market. Credit spreads – the extra margin for default risk – are now notably lower than... Show More

Callum Thomas

With the consensus slowly but surely shifting to expect rate hikes from the RBA, it's worth thinking about the impact of RBA hiking cycles on asset markets. One asset class we recently looked at is Australian credit spreads - we took a look at a few different drivers, and the... Show More

Damien Wood

Risk management, or the lack of it, is usually the key difference between the fortunes of banks when times get tough. History books are full of evidence of what went wrong after a financial calamity. That’s the easy part. The hard part is to foresee the problems. The high level... Show More

Damien Wood

The argument usually comes down to Connery or Craig. Both highly popular James Bonds brought different styles to the big screen. The “best” 007 actor, though, maybe more a case of which one best suited the social environment of the time. For investors, the best bond, similarly, largely depends on... Show More

Richard Murphy

UBS and Goldmans have just called the timing on Australian cash rate rises – early 2018, based on inflation growth. Fixed income fund/ETF investors who have benefited from falling rates need to take account. The AFR’s Christopher Joye has also rightly focused on growing fund duration risk in many articles,... Show More

Nicholas Forsyth

Every Monday, the team at Market Matters answers a number of questions from our subscribers. Today’s question is… “In today's Morning Report you talk about the danger in the bond market. I have a portfolio of commercial bonds from FIIG which is returning me about 7% pa. These are mainly... Show More

Christopher Joye

In this interview I discuss with Peter Switzer what asset-classes are cheap and expensive and what the bond market is telling us about the economy. I also shed some light on our contrarian investment style in which the cash deposit weight in our core portfolio has oscillated between circa 15%... Show More

Damien Wood

Debt can do economic good - that is, if its proceeds are put to productive use such as infrastructure or education. However, Australia’s debt binge since our last recession has gone largely towards rising home valuations. This debt not only has little long term economic benefit, it has made the... Show More