Optimising Client Portfolios In Retirement: The Unique Role Of Corporate Bonds
From goods and services inflation to surging energy costs, a retiring couple today needs more than $70,000 a year to live comfortably, while an individual needs just over $50,000 a year, according to the Association of Superannuation Funds Australia (ASFA). For investment advisers, this underscores the critical importance of structuring and managing multi-asset portfolios which […]
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 […]
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 […]
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 […]
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 […]
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 […]
Virgin Airlines’ bond highlights why rigorous selection is so vital
Buyer beware: why it pays to be cautious when selecting bonds for a portfolio The losses suffered by Australian investors in a bond issued by Virgin Airlines underlines the importance of conducting extensive due diligence before investing in any issue. The misfortunes of investors in a bond issued by Virgin Airlines in Australia in 2019 […]