high yield

The downturn in high yield will be big, long and ugly

Jonathan Rochford

The US high yield market has grown larger and riskier since the financial crisis. Issuers of debt have the whip hand as buyers compete to gain an allocation in the face of surging demand from CLOs and retail funds. Companies are emboldened to seek ever weaker covenants and are taking... Show More

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Credit Snapshots – April 2018

Jonathan Rochford

You know it’s late in the credit cycle when credit investors give away their key protections in return for just a little more yield. This acquiesce comes in different forms, including higher levels of leverage, longer dated debt, subordinated debt and weakened or eliminated covenants commonly referred to as “covenant... Show More

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What's coming for Fintech lending in 2018

Brett Craig

I have been active in the Alternative Finance (AltFi) sector since 2011 and have observed significant progress across lending, payments and fintech in general in the Australian market since then. Show More

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Quin: Australia is overdue a recession

Livewire Exclusive

Richard Quin, Lead Portfolio manager of Bentham Asset Management, is one of Australia’s most seasoned and successful credit investors. While the asset class remains overlooked and underrepresented in many Australian portfolios, there are two bets he’s making right now that should grab your attention. The first position is that long-term... Show More

High-yield bonds and investment-grade bonds: How to balance them

Elizabeth Moran

High yield bonds are tempting but come with greater chances something could go wrong. This wire gives some tips in getting the balance right between high yield and investment grade, and displays a sample portfolio for both strategies. Show More

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Double Digit Yield Opportunity - SME Lending and Fintech

Brett Craig

The SME Alternative Finance (AltFi) lending market is gaining momentum in the Australian market. We are lagging the US and UK markets by about 4 years, however the growth inflection point is near in the domestic market. There are opportunities for double digit yields on the debt, whilst supporting the... Show More

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Four wires that caught my eye

Patrick Poke

Stephen Roberts says housing is coming off the boil, Fidelity’s tips on surviving the next crisis, Anton Tagliaferro talks yield stocks, and Marcus Tuck shares the results of his ASX 100 Growth & Yield screen. Here are four things you should read this weekend. Show More

How to identify investment ideas?

Microequities

This is the question most prospective investors of our managed funds and anyone interested in small cap investing ask us. Identifying investment ideas, whether it is ASX listed companies or global companies can come about many ways. It could be we stumble upon them by trawling through all the companies... Show More

May Review: Steady Markets Deliver Small Gains

Jonathan Rochford

Equities and credit delivered gains in May, commodities were mixed. Japan, France and Germany posted good GDP numbers, forward looking data for the US is weak. US equities are looking overvalued and a range of prominent investors have come out as selling down or going short. High yield credit is... Show More

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The problem with yield stocks

Livewire Exclusive

Tim Hannon, Chief Investment Officer at Newgate Capital, thinks ‘yield’ stocks present significant risks in the current environment. “Sometimes high-yield is an extremely risky proposition.” He is concerned about the proliferation of high-yield ETFs and managed funds, as well as direct investors, bidding up the prices of these high-yield stocks... Show More

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Aussie GDP figures

James Nicolaou

Aussie Economic data just out showed 4Qtr GDP grew +0.6% on Qtr vs Consensus expectations of +0.4%.... Basically meaning their is no rate cuts coming anytime soon with the strong domestic numbers. Equity markets remain a great place to derive income from. GO Australia, Cheers JN Show More

High Yield Debt. Contagion Looming?

Jacob Mitchell

The vast majority of financial crises have been preceded by the rapid accumulation of debt. For recent examples, we need only look back to the sub-prime housing crisis in the United States and European sovereign debt crisis. Perhaps the defining characteristics of the current cycle are the rapid build-up in... Show More

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High Yield Bond Prices Impact Resource Asset Prices

John Robertson

Heavily oversold markets appeared to stabilise at the end of last week but the primary sources of nervousness remain. Exchange rates and high yield bond prices are two of the key market features having a drag on market outcomes and with an impact on the resources sector – both negative.... Show More

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Three big investment mistakes in 2015 you hope you didn't make

Brendon Lau

Many investors would be happy to see the back of 2015 as they've lost money betting on three popular themes. With the way things are unfolding, these three trades may not fare much better in the New Year. Show More

High Yield Sell Down Casts Shadow on Resources

John Robertson

A dramatic sell off in high yield debt has begun destabilising markets. However, as the first chart illustrates, the crash in prices has been a long time in coming. The upward drive of high yield bond prices, supported by Federal Reserve monetary polices, has been losing momentum possibly since as... Show More

resources high yield

Where could rates end up in the US?

PM Capital

It has been nearly a decade since the US market has seen and interest rate rise, so what does a 'normal' setting look like? Jarod Dawson, Director at PM Capital, says investors should be cognisant of the level of stimulus that has been injected into the US economy and that... Show More

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NAB shares halted, Nippon Life to buy 80% of life insurance business

James Nicolaou

National Australia Bank has been placed in a trading halt amid reports that Nippon Life will buy about 80 % of the bank's life insurance business. Japanese news outlet Yomiuri reported Nippon would own about 80 per cent of the unit, according to Bloomberg. In its request for a trading... Show More

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The key to yield investing – avoiding dividend traps

Dr Don Hamson

At the end of August 2015, Myer (MYR) had a historical gross yield of 14.8% making it look attractive to many funds and investors seeking high yield. On 1 September MYR announced it will not pay a final dividend this fiscal year, and it would in fact be raising money... Show More

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Funding retirement in a low income world

Dr Don Hamson

Unfortunately, for today’s retirees, traditional income generating assets such as cash or term deposits are yielding returns that are at all-time lows, and well below the 5% minimum drawdown rate. Luckily for retirees, there is still one asset class that is generating reasonable levels of income. Australian equities Figure 1... Show More

SHIELD – Sustainable High Yield | Helicopter view of the economy points to yield

Mathan Somasundaram

We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. Falling growth outlook, RBA keeping rates unchanged and reporting season uncertainty keeps the short term equity risk high. Australian equities are trading at a premium to long term multiples due to the sustainable... Show More

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