Recession? Hunting for yield?
Donald Trump is fast finding out that global uncertainty doesn’t help financial markets. The S&P500 was down overnight by 0.76% and is down 7.67% in the last three months, getting close to correction territory. It’s enough for well-known Australian equity investor, Marcus Padley to have gone to 100% cash.
But, if you’re reading this newsletter, you know you can do better in fixed rate, investment grade bonds rather than cash if we’re heading into a recession.
Vincent Mortier from Amundi says there are three reasons credit markets are attractive for yield-hunting investors in 2025.
Coolabah Capital has timed the risk-off sentiment perfectly with a new fixed income ETF.
There’s been plenty of new products this year and an analysis by AUSIEX, shows strong demand for fixed income ETFs. Apparently, baby boomers’ most popular ETF trade with financial advisers amongst the biggest users. The article also lists the top 10 fixed income ETF holdings.
Meanwhile, Perpetual Digital in collaboration with BondAdviser has launched an end-to-end digital program, allowing financial advisers to trade thousands of individual bonds in small parcels in a range of currencies.
It’s fabulous to see domestic market opportunities increase exponentially.
Global risk-off sentiment has led to solid domestic bond returns in February according to Emma Lawson from Janus Henderson in her excellent monthly Australian market review.
Finally, I had the pleasure of interviewing Dr Laura Ryan to celebrate International Women’s Day last week. She is amazing! She works at Ardea as Head of Research and Development and is passionate about gender equality and sustainability. Her research into gender and promotion will help anyone seeking a pay rise. She put her sustainability passion into practice, with her inner Sydney terrace renovation appearing on Grand Designs late last year.
Have a good week!
