Christopher Joye, Author at BetaShares
Hybrids and credit spreads – a potential opportunity in a difficult market

Hybrids and credit spreads – a potential opportunity in a difficult market

Reading time: 4 minutes
Written by Christopher Joye, Chief Investment Officer, Coolabah Capital Investors, Manager for HBRD
A dramatic increase in credit spreads in major bank hybrids presents investors with the potential for attractive gains
Amidst the current market turmoil, ASX-listed hybrids have been one of the more liquid and transparently-traded parts of the fixed income markets.

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hybrids victory

Frankly amazing: why hybrids are a big election winner

Reading time: 4 minutes
The surprise Federal election result has been positive for hybrids, and good value appears to remain in this sector.  The market’s overreaction to franking credit fears, moreover, highlights the benefits of active management in this complex area.
Fading overreaction to the Labor Party Policy
When Labor initially announced their proposal to eliminate cash refunds on franking credits in mid-March 2018,

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ASX-Investor-Day

Investing in hybrids – how does HBRD stack up?

In the analysis below we have studied the performance of the BetaShares Active Australian Hybrids Fund (managed fund) (ASX:HBRD) from inception in November 2017 to 31 July 2018, against a range of alternatives. These include an ASX hybrids index published by index provider Solactive (which is the benchmark for HBRD), the fixed-rate Australian bond benchmark (the AusBond Composite Bond Index),

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Hybrids vs Equities: How Does Risk vs Return Trade-Off Stack-Up?

In this contributed post, Chris Joye, Portfolio Manager at Coolabah Capital and the investment manager of our HBRD fund, analyses the current risk and return trade-offs of ASX shares vs. major bank hybrids. The post illustrates that in current market conditions, hybrid investors are able to obtain attractive income returns coupled with significantly less historical risk when compared to Australian shares.

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