ABE Weekly: Monetary policy offers no shortcuts
Australian Bond Exchange Weekly Update Friday 18th August 2023 Key Points RBA minutes signal a turning point in the fight against inflation The Aussie dollar tumbles to a nine-month low Despite a need for instant gratification, monetary policy offers no shortcuts New ABS data shows Australia has likely dodged a wage-price spiral bullet England may […]
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 […]
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 […]
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 […]
ABE Weekly: Equities get the boot as billions flow into fixed income
Australian Bond Exchange Weekly Update Friday 14th July 2023 Key Points Billions of dollars are flowing into fixed income (and billions are being pulled from equities), as major money movers including super fund managers and Wall Street veterans reallocate assets in response to rising cash rates and high inflation. ANZ Consumer Confidence Report shows homeowners […]