Why Yarra is long this asset class for the first time in years

2022 was miserable for bond investors. Now, as Roy Keenan explains, they have more opportunities than they know what to do with!
Roy Keenan

Yarra Capital Management

2022 was the worst year for bond investors in decades - and by a country mile at that. Relentless interest rate hikes from central banks forced fixed income investors to scan the market for opportunities - all of which provided a high risk-reward ratio. But as we near the end of all those rate hikes, opportunities are now popping up left, right, and centre.

In the Australian government bond space, yields are falling. In some tier-two paper, you can now get 6-7% returns. And we're continuing to add duration to our client portfolios.

So why are we buying so much?

As I explain in the following video, there is now no need to take as much risk to find returns as long as you keep a quality bias in your portfolio. 

But in spite of a greatly increased opportunity landscape, there is only one asset class that my team and I are particularly bullish on. You'll also find out what that is in the following video.

Access to regular, stable income

The Yarra Enhanced Income Fund seeks to deliver higher returns to investors than traditional cash management and fixed income investments. Learn more by visiting our website

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1 fund mentioned

Roy Keenan
Co-Head of Australian Fixed Income
Yarra Capital Management

Roy is a senior leader within the Fixed Income team at Yarra Capital Management, focusing on Australian Fixed Income and Credit. He has over 30 years’ investment experience both in asset management and trading, specialising in credit products...


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