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 […]
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 […]
ABE Weekly: Have Interest Rates Peaked? RBA Holds Cash Rate Steady Again at 4.1%p.a
Australian Bond Exchange Weekly Update Friday 8th September Key Points RBA Holds Cash Rate Steady for Third Consecutive Month September is Statistically the Worst Month for Equity Market Performance Australian GDP Beats Expectations With a 0.4% Expansion in the June Quarter Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate remains […]
Managing volatility with corporate bonds
Corporate bonds can play a key role in stabilising investment portfolios during periods of heightened volatility in financial markets. Not only do they exhibit lower price instability compared to equities, but as long as the issuer of the bond remains solvent, you will continue to receive fixed coupon payments until maturity. What are corporate bonds? […]
ABE Weekly: Australian Inflation Cools – Are Rates Headed Lower?
Australian Bond Exchange Weekly Update Friday 1st September Key Points Australian Inflation cools more than forecasts Matildas boost Australian retail sales but growth rate flatlines Rising debt costs in focus for Australian corporates Global interest rates higher for longer? Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate sits at 4.1%pa […]
Interest In Corporate Debt Climbing As Future Fund Doubles Domestic Exposure to $1 Billion
With fixed income assets now offering their highest yields in over a decade, institutional investors are significantly increasing their exposures to the asset class. Just last week Australia’s sovereign wealth fund, the Future Fund, announced it had doubled its domestic corporate debt exposure to $1 billion while AustralianSuper, Australia’s largest super fund also confirmed it […]
ABE Weekly: CBDCs and Corporate Bond Markets Of The Future
Australian Bond Exchange Weekly Update Friday 25th August 2023 Key Points RBA releases CBDC report with input from the Australian Bond Exchange Future Fund doubles exposure to Australian corporate debt to $1 billion Treasury yields slide on weaker U.S. and European PMI data Market Yield on U.S. Treasury Securities: 10-Year Constant Maturity Source: Trading Economics […]
Exploring Investing In bonds: strategies and returns
Investment bonds, particularly corporate bonds, are a popular avenue for investors seeking stable returns and diversification in Australia. These debt securities play an important role in the capital market. They do this by enabling companies to raise funds for various projects while allowing investors to earn a fixed income. In this article, we will learn […]