Malcolm in the middle

Richard Murphy

Australian Corporate Bond Company

A survey at the SMSF Association conference in Adelaide asked advisers if they thought hybrids were fixed income securities. 47% said they were, or they were unsure. With a growing acceptance of the ‘lower for longer’ case for rates, this question becomes more important for investors facing ultra-low returns on Cash and TDs. There’s a nationwide search going on for yield, but without capital volatility. Hybrids are being ‘sold’ as if they were a fixed income alternative to TDs. Given their inevitable volatility this is a recipe for disaster for investors thinking they’re buying fixed income securities like government bonds or senior corporate bonds. Read my blog on the link below, which makes the case why hybrids can superficially appear to be one thing, when in fact they’re another – a matter debated at ‘The Bond Forum’ held in late April in Sydney. (VIEW LINK)


Richard Murphy
Richard Murphy
CEO and Co-Founder
Australian Corporate Bond Company

Richard is the CEO and one of the founders of ACBC. He has over 20 years' experience of developing new markets, products and services for ASX Limited. During his time at ASX, Richard was involved in developing the ETF market, the mFund...

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