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Investment Grade Bonds
The gold standard
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Many financial advisers are limited to investing only in Investment Grade bonds. What makes a bond Investment Grade? How is the ranking determined and by whom? In this article we examine what Investment Grade means and what are the ramifications in regards to exposure to default risk.
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Bond investing - it's maths, not magic
"Life is complicated, bonds are not" Rick Van Ness
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The reliability and predictability of bonds is maths, not magic. Despite their apparent complexity, bonds are simple investments. Help your clients to understand the simple maths underpinning the rationale for investing in bonds, and they'll understand why it makes sense to include bonds in their investment portfolio. Thankfully, we have a suite of tools that do all the maths for you!
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Long term bond investors shouldn't fear rate rises
Overreacting to prospect of rate rises may do portfolios a disservice
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It’s a commonly held belief that rising interest rates are universally bad for bond investors because when interest rates go up, bond prices fall. Many investors, concerned that interest rates are about to rise meaningfully as central banks look to increase policy rates, are considering adjusting their portfolios. They may be contemplating selling out of bonds now and reinvesting at a later stage when bond yields have risen. However, this might not be a prudent course of action.
We have written on this subject numerous times ourselves. PIMCO have also written this excellent piece on this same concept.
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The perfect blend: bonds and equities in a portfolio
Smooth out portfolio returns by including negatively correlated assets
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Bonds and equities typically move in opposite direction and are therefore 'negatively correlated'. This is advantageous because when one asset class is doing poorly the other is going up in value. The net effect for your clients is a smoother profile of returns for their portfolios. We look at how this works in practice.
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Interactive tools & calculators
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Cash Flow Tool
Build a portfolio of up to 10 XTBs and chart coupon payments and total return. With pre-loaded XTB portfolios, it only takes 3 clicks to visualise the income your clients could receive from XTBs.
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Interactive XTB Table
The Available XTBs table lets you filter by Company, Maturity Date, YTM and much more. Click on table headers, or use the filters to narrow your selection and build an XTB portfolio on the fly.
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GLOSSARY: Maturity Date
The fixed date on which the Underlying Bonds are scheduled to be redeemed by the Bond Issuer (other than by way of an Early Redemption), the Principal is to be repaid and any final coupon is to be paid. View our glossary for more terms
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06 JUN: YTMF01 - AMP BBSW+0.87% 06 JUN 2018 - MATURING
08 JUN: YTMTCL - Transurban 4.75% 08 DEC 2021
11 JUN: YTMQF2 - Qantas 7.50% 11 JUN 2021
12 JUN: YTMF03 - BOQ BBSW+1.00% 12 JUN 2018 - MATURING
12 JUN: YTMBOQ - BOQ 4.00% 12 JUN 2018 - MATURING
28 JUN: YTMAST - Ausnet 5.75% 28 JUN 2022
Keep up to date with XTB coupon dates on our website calendar, or follow us on Twitter or LinkedIn.
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04 JUN: Firstmac launches A$1 billion RMBS Transaction
04 JUN :Bedding down WA's budget reform
01 JUN: Deal and ratings review, week ending 1 June 2018
01 JUN: Housing NZ prints its maximum volume in market return
01 JUN: Avanti plans New Zealand RMBS deal
KangaNews has an excellent summary of the latest bond transactions: View here
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If you have any questions on the content included in Yield Matters or need help with anything regarding XTBs, please contact us on 1800 995 993 or email advisers@xtbs.com.au
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Stay in touch by following us on the social platform of your choice
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