In a market where risks have risen, diversifying within asset classes, particularly defensive asset classes, is just as important as having a sound mix of growth and defensive assets, writes Justin Tyler, Director, Daintree Capital.
Diversification is a central strategy used by asset allocators to lower a portfolio’s risk and...
As investors move through life, their appetite for risk and reward changes. It’s common for older investors to choose lower risk investments as they have less time to remedy any losses if they occur.
While there are no set ‘rules’ for asset allocation by age, one of the most famous...
The COVID-19 pandemic upended financial markets and delivered an enormous shock to the global economy. It forced a rapid transition from late cycle into the downturn phase of the global credit cycle. Here, U.S.-based, Loomis Sayles & Company shares its analysis of the credit cycle and key factors they’re...
Australian investors are largely denied the same range of investment choices as investors in other developed nations and should be outraged.
Corporate bonds mostly remain the domain of institutional and professional investors for no good reason. Positively, companies such as the XTB company, Australian Bond Exchange and other bond brokers...
The recent risk market rally reflects hope for a sharp recovery as economies slowly reopen. However, bond markets are once again diverging from equities and predicting a different future. Call me biased but my bet is on bonds. Bond markets are seldom incorrect in the long run. For now...
As published in The Weekend Australian on 26 June 2020
In the frenzied final days of the sale of Virgin Australia, more than 5000 local bond investors suddenly found themselves centre stage.
The surprise departure of Cyrus Capital meant that for a very short time there were two remaining bidders for...
As published in The Australian on Saturday 15 June 2020
Virgin Australia’s administration is a recent low point for Australian financial markets, with mums and dads being caught holding corporate bonds that may prove worthless.
The airline business is inherently risky. Oil prices, currency fluctuations, a commodity-like service and the threat...
Summary
The underlying performance for the major banks was solid for the first six months of fiscal 2020 (1H20). Operating income was broadly stable half-on-half as largely flat net interest margins were met with soft, yet still positive, volume growth.
Performance will soften in the near-term as mortgage and...
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...
