2023 Reflections – A Year in review
As we approach the end of 2023, now is an opportune time to reflect on the year that was, and plan for the year ahead. With inflation continuing to cool across most major economies, the key question for 2024 and beyond is – how long will rates remain elevated? U.S. Resilience The year 2023 has […]
ABE Weekly: Cooling But Not Cold – U.S Inflation Edges Lower
Australian Bond Exchange Weekly Update Friday 17th November Key Points U.S. inflation falls more than expected to 3.2% Australian unemployment and jobs increases in October Australian consumer confidence evaporates Business conditions up, confidence down – NAB Monthly Business Survey U.S. retail sales slide lower U.S. small business optimism down in October U.K inflation continues to […]
Cash, Money Markets and Fixed-Income – Same, Same But Different
With both money markets and fixed-income markets offering highly attractive yields, a recurring question we are frequently being asked is – which one should I invest in? Unsurprisingly, there is no simple answer given it depends on the personal needs and requirements of your clients. It’s also important to state that an investment in either […]
ABE Weekly: Material Change Confirmed – RBA Hikes Again
Australian Bond Exchange Weekly Update Friday 10th November Key Points Material change confirmed – RBA hikes again IMF revises China outlook European inflation expectations rise Jerome Powell – “we will not hesitate” Have yields peaked? Global Cash Rates & Inflation The Reserve Bank of Australia (RBA) Cash Rate now sits at 4.35%pa and the annual […]
Higher for longer – Why you should be considering Corporate Fixed-Income
With corporate fixed-income securities now offering some of their most attractive returns in over a decade, the opportunity cost of having no exposure for your client’s portfolios has become material. Since the Global Financial Crisis (GFC), artificially suppressed interest rates through quantitative easing have significantly distorted the dynamics of financial markets. For bonds and other […]
ABE Weekly: All Eyes on the RBA
Australian Bond Exchange Weekly Update Friday 3rd November Key Points War of words – all eyes on the RBA as IMF tips a rate rise Long way to go – Federal Reserve holds but cautions further hikes ahead Eurozone inflation shrinks – along with the economy Private credit growth in Australia flatlines but retail sales […]
ABE Weekly: Bullock Speaks Ahead of Looming Rate Decision
Australian Bond Exchange Weekly Update Friday 27th October Key Points Australia’s inflation rate accelerated in the September quarter Michelle Bullock speaks Westpac Chief Economist tips interest rates to fall in 2024 Preliminary Flash PMI – Australian business activity weakens Future Fund made $60 billion in portfolio adjustments during 2023 Global Cash Rates & Inflation The […]
Corporate Fixed-Income: A Pillar of Stability in An Uncertain Environment
With ongoing uncertainty in global markets, investors are increasingly seeking refuge in assets that can provide a greater degree of stability and peace of mind. In recent times, corporate bonds and other fixed-income securities have often been overlooked in favour of more ‘glamorous’ asset classes like equities which have posted double digit returns on average […]
ABE Weekly: U.S. Consumer Spending Reveals A Robust Economy
Australian Bond Exchange Weekly Update Friday 20th October Key Points Australian consumer sentiment inches slightly higher U.S. inflation remains sticky at 3.7% Restrictive policy to remain in place: Federal Reserve Middle east uncertainty rattles markets but oil sells off IMF increases U.S, growth outlook forecast “Monetary policy slowing the growth of demand and inflation”: RBA’s […]
Capital stability and attractive income – why advisers should be considering corporate fixed income for client portfolios
One year ago, U.S. 10-year Treasury bonds were yielding 0.74%pa while today, they offer 4.61%pa – and coupon payments on corporate fixed-income securities are even higher. With widespread global economic and geo-political uncertainty, it’s unsurprising to see many investors rebalance portfolios in favour of asset classes which can provide a greater degree of stability and […]