What the ‘smart money’ is saying about Australia's future

Fixed income investors have long held a reputation in markets as the ‘smart money’. With a focus on stability, income, and capital protection, and a propensity for complicated formulas and spreadsheets, fixed income investors often have a better idea of what’s happening in markets than just about anyone else. So, when Jay Sivapalan, one of the most respected fixed income managers in the country talks about the future of the Australian economy, interest rates, and housing, you can be sure there’ll be some outstanding insights. This conversation was no exception.

In this week’s episode of The Rules of Investing podcast, we hear why investing is so different today to when he joined the industry 20 years ago, and he shares his views on what could lie ahead over the next 12 months.

Time stamps:

• 1:42 – Jay’s background and how he developed an interest in fixed income
• 7:34 – Differences between today’s bond environment compared to when he entered the industry 20 years ago
• 12:10 – What the future holds for long-term bond yields
• 15:41 – Jay’s views on the housing market & broader implications of the pandemic on Australian industry
• 21:35 – Trends in corporate insolvency and the implications on investors
• 26:02 – The best opportunities that currently exist within Australian fixed income assets
• 28:54 – What will Australian interest rates and the broader economy look like in 12 months?
• 29:49 – The five-year economic outlook
• 31:09 – Jay answers our three favourite questions.