Funding Retirement with Fixed Income
When you reach retirement age, it’s important to ensure financial stability. Bonds may be a suitable investment for retirement planning. With corporate bonds, you can generate passive, predictable income to fund your golden years. Bonds can provide regular income via regular coupon payments throughout retirement. This makes bonds a better choice than other investments with […]
Investor risk appetites – where corporate bonds fit
The 60/40 portfolio model has been a mainstay of the investment world for decades, and for most of that time it has served investors very well. It calls for 60% of a portfolio to be allocated to equities to drive growth, and the remainder to be devoted to bonds to provide stability when financial markets […]
ABE Weekly: Amidst volatility, seek predictability
Australian Bond Exchange Weekly Update Friday 11th August 2023 Key Points Despite a fall in discretionary household spending, some economists think inflation could rise as labour costs increase and unemployment holds steady China’s deflation impacts Australian commodities, as mining turnover takes a hit (down 18.1% YoY) despite a significant rise in Chinese coal imports Fixed […]
ABE Weekly: Bond payouts match stocks for the first time in a over a decade
Australian Bond Exchange Weekly Update Friday 4th August 2023 Key Points The RBA left the cash rate on hold at 4.1%p.a on Tuesday, catching economists off guard, validating markets, and giving borrowers a much needed break. Comments within the RBA’s decision statement have prompted speculation on when the next rate cut will be, likely in […]
De-mystifying Bond Yields: A Comprehensive Guide for Beginners
Bonds are a popular investment options that offer lower risk compared to shares. When you invest in a bond you are essentially lending an entity such as the government or a corporation. The government or corporation will make regular payments, called coupons to you throughout the term of the bond. In Australia, several types of […]
ABE Weekly: Fixed income is incredibly attractive right now
Australian Bond Exchange Weekly Update Friday 28th July 2023 Key Points The Reserve Bank of Australia (RBA) Cash Rate is currently 4.1%pa, and the rate of inflation in the year to the June quarter has eased to 6%. Next Tuesday, the RBA will decide whether to change the cash rate, or hold as is. The […]
Bank Bonds Explained: Why is there such a demand for hybrid securities?
When you purchase a bond, you are providing funds to the issuer, whether it’s a commercial bank or the reserve bank. The bond issuer is obligated to repay the investor the face value of the bond (corporate bond, bank bond , government bond, or hybrid) on a specified date and to pay regular coupon payments, either […]
The role of corporate bonds in retirement planning for your client
Your clients are almost certainly familiar with equities and how they can generate an income in retirement. However, they probably know very little about the role that corporate bonds can play in mapping out fixed income streams in retirement planning. Yet these instruments feature heavily in the financial plans of US and European investors because […]
ABE Weekly: Fixed income investments “the stand out asset class”
Australian Bond Exchange Weekly Update Friday 21st July 2023 Key Points The RBA minutes released this week showed rising unemployment concerns played a key role in the decision to pause. However, rising employment suggests another hike is on the horizon. US, UK & EU inflation data (easing to 3%, 7.9% and 5.5% respectively) suggests high […]
How do you calculate risk vs reward? Comparing the risks of bonds and shares.
Investing in any asset will always carry some kind of risk, which is why the risk/reward ratio is so popular with traders and investors in assessing the best investments for their specific situation. Whatever type of asset you choose to invest in, there is always risk associated, you just need to make sure you get […]