Fixed income rarely features in the headlines and is absent from many Australian investment portfolios. However, it’s the largest and most important market in the world.
Join the ausbiz team as they examine fixed income news through both a local and international lens. They speak with the experts throughout the day to better understand how central bank policy, economic data and capital flows interact to influence this critical financial market.
What is fixed income investing?
The market for fixed income investments is the largest in the financial world. It includes various financial instruments such as sovereign, state and local government bonds, corporate debt, and those backed by a pool of other interest-bearing assets such as residential mortgage-backed securities.
As the name suggests, fixed income products provide investors income through fixed periodic payments. Certain products also allow holders to express a position on the future direction of interest rates.
Why invest in fixed income?
Fixed income can play a myriad of roles in an investment portfolio. It can provide diversification away from equities and property, preserve capital, offer income and protect against inflation. Investments in fixed income can also provide investors opportunities across the market cycle.
Even if you don’t have direct fixed income exposure, every investor needs to understand the signal these markets provide regarding the outlook for growth, inflation and solvency of companies. As many seasoned investors know, trouble almost always starts in the bond market.
Fixed income on ausbiz
At ausbiz, our coverage goes beyond simply covering fixed income news for investors.
Utilising the real-world financial experience of our anchors and guests, including former Treasury dealer David Scutt, we examine the investment case for fixed income and explore why bonds can often predict upheaval in other asset classes like property and equities currencies, and commodities well ahead of the event.
When you grasp what fixed income markets are signalling, it becomes easier to choose where you should be invested.
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