Fixed Income Investing Archives | BetaShares
GGOV: Defending your portfolio with global government bonds

GGOV: Defending your portfolio with global government bonds

Reading time: 4 minutes
Despite the current upbeat mood in global equity markets, the outlook still includes significant downside risks. For investors seeking some portfolio diversification and defence in view of these risks, one potentially attractive option is high-quality, long-dated sovereign bonds issued by the governments of today’s major developed market economies –

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Investing for Income (part 2)

Reading time: 5 minutes
Earlier this month, in Investing for income (Part 1), we looked at the challenges facing investors seeking income in a low interest rate world, and presented several opportunities in the cash and fixed income asset class.
In Part 2, we explore the opportunities to earn income from equities.

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Investing for income

Investing for Income

Reading time: 5 minutes
According to a Bloomberg report from June 2019, more than 20% (or US$11 trillion worth) of the investment-grade bonds on issue worldwide were trading at negative yields. In other words, investors buying these bonds know that if they hold them to maturity, they will receive cashflows over the life of the bond that are less than what they are paying for the bond today!

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Idea

Is platform cash burning a hole in your clients’ portfolios?

Simply choosing “the default option” when it comes to the decision of where to best park a client’s cash on investment platforms could be a missed opportunity when an interest rate which is ~40% higher than the average rate offered by three major platform providers is easily available.
Australian investors have long been chided for not taking enough interest in their superannuation.

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Bonds are (still) behaving badly

Recent market concerns with regard to rising bond yields has once again drawn attention to the value of floating versus fixed rate bonds in such an environment. This note provides an update on the recent performance of these two types of bond exposure.
Risk and Return in Fixed vs Floating Bond Exposures 
As I’ve previously explained,

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Bond Basics Part II: DIY or bond funds?

Should you hold individual bonds and “do it yourself” or a diversified bond fund/ETF? One commonly held belief in investing is that holding individual bonds entails less risk than bond funds, due to the return of principal at maturity. Is this correct? If so, does it matter? Ultimately, it depends on the role bonds play in your portfolio,

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Rise up! How high could U.S bond yields go?

Global bond yields have started to lift over the past year after several years of trending down. This post examines how structural and cyclical factors have affected US bond yields over recent years and what a “normal” level of US bond yields might look like going forward.
We can’t blame inflation for lower bond yields
As seen in the chart below,

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