ABE Weekly: ASX 200 Gains Evaporate as ‘Higher For Longer’ Paradigm Sets In
Australian Bond Exchange Weekly Update Friday 6th October Key Points New captain, same course – RBA holds again New lows for the ASX – 2023 gains mostly wiped Positive PMIs – U.S. manufacturing picks up while services remain in expansion U.S. job openings increase in August Hopes rise for Chinese stabilisation Rolls-Royce Reactors Global Cash […]
In a Higher for Longer Environment, Fixed Income Needs to be Considered
With inflation likely to remain higher for longer than expected, interest rates are also likely to remain elevated as central banks seek to prevent any resurgence of exuberance. For many investors, this environment is boosting the allure of fixed-income relative to global equities markets, and this is unsurprising given the current disparity between the available […]
Why Fixed-Income Securities Play an Important Role Within Investment Portfolios
Understanding the important role which fixed-income securities play within investment portfolios is crucial for investors of all persuasions, regardless of whether income generation or capital growth is the primary objective. The 60/40 Portfolio The 60/40 portfolio has formed the bedrock of the modern investment portfolio for decades, and for good reason. Within such a portfolio, […]
ABE Weekly: Inflationary Pressures Persist as Australian CPI Turns Higher
Australian Bond Exchange Weekly Update Friday 29th September Key Points Australian CPI rises again to 5.2% in August U.S. GDP grows in-line with expectations Japanese inflation remains stable but elevated Oil makes fresh highs German consumer confidence ebbs Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate remains unchanged at 4.1%pa […]
Structuring client portfolios for a better retirement
When it comes to effectively structuring client portfolios for retirement, allocating investment capital to safer and less volatile asset classes is imperative. Fixed-income securities including corporate bonds can play a pivotal role in providing much-needed portfolio stability and predictable income, reducing some of the inherent volatility associated with equity investing. While fixed-income securities generally move […]
ABE Weekly: Rates To Stay Higher for Longer as Federal Reserve and Bank of England Hold
Australian Bond Exchange Weekly Update Friday 22nd September Key Points RBA considered another rate hike in September U.S. Federal Reserve holds rates steady again U.K inflation surprises to the downside prompting BoE to hold Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate remains unchanged at 4.1%pa The US cash rate […]
Corporate Fixed Income Securities – What Are the Benefits?
The corporate debt market is one of the largest financial markets in the world, providing the means for large corporations to raise money directly from investors to fund their operations. While smaller organisations are usually limited to bank and/or non-bank lenders to acquire funding, larger organisations can bypass such intermediaries and raise funds directly from […]
Financial Stability in Retirement: Why Advisers Should Consider Fixed-Income Securities For Clients
New research released last week revealed that the top concern for Australians aged over 50 was running out of savings in retirement. The results are somewhat unsurprising given both inflation and interest rates have surged since COVID-19 lockdowns. While inflation has begun to erode the purchasing power of savings, aggressive monetary tightening has slammed the […]
ABE Weekly: Higher For Longer? U.S. Inflation Increases As Federal Reserve Meeting Approaches
Australian Bond Exchange Weekly Update Friday 15th September Key Points U.S. inflation increased faster than expected in August as gas prices soar Australian consumer sentiment slides but jobs data reveals a resilient economy UK unemployment and wages rise as economy shrinks by 0.5% in July Financial concerns for retirees mount in Australia as cost of […]
Why Bond Yields Could Stay Higher For Longer
Despite rapid surges in interest rates to combat inflation, many economies are still running hot with very low unemployment and positive GDP growth. Despite 11 interest rate hikes, the U.S. economy continues to be the strongest performer out of the G7, as measured by GDP growth since pre-pandemic levels. Growth increased by 2.4% in the […]