By Mitch Reznick, CFA; Robin Usson, CFA; and Sophie Demare of Federated Hermes
After record issuance in 2021, the Green, Social, and Sustainability bond market (GSS) has grown to a market capitalisation of just under US$2 trillion. The fastest growing security type in this market is the sustainability-linked bond (SLB)....
Bonds are useful in different economic conditions. Fixed rate bonds provide certainty in declining interest rate environments, floating rate notes pay a fluctuating rate of return and are often sought after when interest rates are rising. While inflation linked bonds are a very good long term hedge against rising...
By Marion Le Morhedec, Global Head of Fixed Income at AXA IM Core
During the past decade, the green bond market has seen exceptional growth.
So far this year, there’s already been $270 billion worth of issuances with 41 new issuers coming into the market this year, pushing the global market...
Recent new issues by NAB, Macquarie, and Ampol might have you thinking about adding capital notes, sometimes called ‘hybrids’ to your portfolio. In this article, we discuss the advantages and disadvantages to help you determine if they might be right for you.
A capital note is a hybrid product and...
What is the difference between private debt and private credit? Not much, the terms are interchangeable according to these two industry experts.
Nayef Perry, Head of Direct Credit – Hamilton Lane
Why choose private credit?
Investors typically choose to invest in private credit based on consistency of performance over long periods, downside...
Credit ratings are important indicators of risk and return in fixed income markets.
They give investors an indication of the perceived future risk they are taking and measure the perceived risk of future failure to pay promised income or capital at maturity.
A high credit rating, in the AAA, AA or...
Verdict
A risk-off stance in fixed income is broadly beneficial during recessions, minimising exposure to defaults. However, High Yield performance is not far behind Investment Grade, with the HY market typically recovering significantly earlier than the real economy.
Received wisdom for recessionary investing is to favour higher quality, longer duration asset...
As more Australians increase their allocations to government and corporate bonds, it is important to understand the two different ways you can make an investment.
Just like shares, you can either buy and sell them directly or you can have someone else manage them for you. In the fixed income...
This month AMP issued a new hybrid. AMP planned to raise $200m via an issue of Capital Notes 2 (ASX code: AMPPB) securities, which it exceeded, raising $275m. The securities are perpetual, convertible, subordinated, non cumulative, unsecured notes and the proceeds used to fund “one or more APRA-regulated entities...
The fixed income asset class covers a broad range of investments: deposits, bonds, hybrids and securitised investments such as asset backed securities and residential mortgage backed securities.
Eight reasons to consider investing in some of the fixed income securities listed above:
Diversification – you can access governments, companies and investments...
