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How to Select a High-Quality Mortgage Fund & an Example

Mortgage funds have surged in popularity in recent years due to the attractive yields on offer which are backed by tangible property assets. However, as the sector matures and becomes more crowded, it’s more important than ever that investors understand not all funds are created equal. The vast spectrum of mortgage fund disclosure is also important to understand, since much of it is below the minimum level required by prudent investors.

13 June 2025
 · 8 MIN READ

How to make More Money in Bond Funds with a Superior Understanding of Duration

In the world of bond investing, few concepts are as powerful, or as misunderstood, as duration. Often simplified as a measure of interest rate sensitivity, duration can be used as a powerful tool to help investors make more informed and profitable decisions when investing in bond funds. Moreover, understanding duration at a deeper level can significantly enhance investors’ returns and reduce their risk by optimising timing, improving fund selection, and navigating changing interest rate environments more effectively…

11 June 2025
 · 7 MIN READ

End of Hybrids: A Time for Yield with Franking

At the beginning of this week, we saw APRA release its decision on the $43B Hybrids market. Hybrids have been an instrument used primarily by banks to increase Tier 1 Capital levels and were a combination of debt and equity, hence the name “hybrid”. In this week’s piece we are going to look at the bank hybrids market, a popular investment category that has grown to be worth $43 billion since first being offered to retail investors in 1998.

18 Mar 2025
 · 4 MIN READ

Private Credit in the Ascendancy

There aren’t many asset classes which have grown as consistently as private credit in recent years. More and more investors are allocating a portion of their fixed income capital to this fast growing asset class. For good reason. The solid risk-adjusted returns available in private credit provide welcome stability and predictability to investors’ portfolios.

5 Mar 2025
 · 4 MIN READ

Navigating Turbulent Times: A Bond Investor's Perspective

Multifaceted geopolitical and economic tensions threaten to disrupt the delicate balance of the world order. Economic forecasts, once predictable, now fluctuate like erratic cyclonic winds. The threats of recession are delicately balanced with interest rate policies that continue to reduce inflation. The threat of tariffs, like an unexpected frost, is decimating established supply chains, creating trade wars. The slowing growth of China casts a long shadow over commodity prices, easing our local markets into the shade. Finally, we have The Trump Effect, whereby long-held economic and geopolitical policies are being upended to create a new world disorder.  Altogether, there is a deep sense of unease amongst investors. It’s a stark warning that we may be facing significant and unpredictable headwinds in 2025. Hence, many investors want predictability and investment safe havens that provide protection from future storms.

28 Feb 2025
 · Tim Lea
 · 6 MIN READ

The seismic shifts afoot in fixed income markets

More than a few fund managers have highlighted that fixed income investing these days is a world away from what it used to be. They’d be right. The very structure of global fixed income markets has changed since the Global Financial Crisis. As with all structural shifts, it pays to revisit the here and now on occasion to ensure your current strategy is fit for purpose. The reality is the strategies necessary to generate alpha in fixed income markets are different from the past.

28 Oct 2024
 · 5 MIN READ

Private Credit in the Spotlight: A Strategic Opportunity for Investors

In recent years, private credit investment has emerged as a frontrunner in the investment landscape. Private credit has topped the private markets globally in terms of both funds under management (FUM) growth and overall performance, capturing the attention of investors seeking stability in uncertain times. Private credit funds generate returns by acting as non-bank lenders, providing financing to businesses, and passing on the interest income from loans to investors.

18 Oct 2024
 · 4 MIN READ

What GEMI Capital’s challenges can teach us about selecting mortgage funds

The mortgage fund asset class has grown and matured in recent years. For good reason. Mortgage funds often offer investors attractive risk-adjusted returns by virtue of their superior yields. But as with all asset classes, not all mortgage funds are created equal. The recent challenges experienced by GEMI Capital’s investors provide a timely reminder of what can go wrong in this asset class.

6 June 2024
 · 6 MIN READ

The bond bear may not be ready to hibernate

We’re entering unchartered territory with the current global bond bear market both in terms of duration and magnitude. For an asset class which had previously been incorporated into the vast majority of portfolios primarily for its defensive attributes, this bear market has raised serious questions about how investors should view bonds looking forward.

22 May 2024
 · 6 MIN READ