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 […]
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 […]
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 […]
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 […]
Fixed Income & Bonds: A Comprehensive Guide For Beginners
There’s been a lot of noise recently in the market about fixed income and bonds, as advanced economies battle with high, sticky inflation, a lack of housing supply, and rising interest rates. The key thing to remember is that wherever you decide to invest your money, there is always risk involved. You just need to […]
What is the mortgage cliff and why does it matter?
Over 850,000 Aussies on fixed rate mortgages around 2% will soon be facing variable rates of around 6%. To understand the fixed-rate mortgage cliff in Australia in 2023, there are two key concepts you need to understand. The first is how COVID-19 fostered the lending of “free money” and encouraged borrowers to lock-in fixed-rate […]
The truth about inflation; is it stealing your savings?
“Inflation is caused by too much money chasing after too few goods” – Milton Friedman The spate of inflation wreaking havoc on the global economy is causing a cost-of-living crisis across Australian, UK, U.S. and EU markets. Central banks in each of these developed regions have been raising cash rates to fight the rising cost […]
Are shares riskier than bonds?
Bonds vs Shares, What’s the Difference? When it comes to investing, most people have heard of shares, stocks or equities. These investments, which are actually all just different words for the same financial instrument, give investors a small piece of ownership (equity/stock) in a company or corporation. Bonds, debt securities and other fixed income investments, […]
Superannuation taxes set to double, making fixed income an attractive alternative
Big changes are on the horizon for superannuation tax, which could see investors flock to lower-risk investment markets like fixed income. From 1 July 2025, some superannuation account holders will have their headline tax rate doubled from 15% to 30%. Although this is still below the top marginal tax rate of 45%, the significant increase […]
CBDC vs Cryptocurrency, what’s the difference?
If you’ve been reading the financial news headlines over the past six months, it’s likely you’ve encountered the acronym CBDC. When it comes to dissecting the official explanations of financial concepts and their accompanying acronyms, it can take time to wade through the reams of academic information, intertwined with complex concepts and industry jargon, delivered […]