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Don't compare apples and oranges in private credit

Global and Australian private credit are different and shouldn't be lumped together. Investors also need to be wary of more complex and lower quality securities as the asset class grows.

Should investors follow super funds into private credit?

Led by superannuation funds, institutions are piling into private credit, attracting to the high yield and steady returns on offer. Should retail investors and SMSFs allocate more money to this burgeoning asset class?

Securitized credit: More relatable and connected to daily life than you think

Securitisations are all around our daily lives, so why do they strike most of us as a complex, financially engineered labyrinth? This paper explains why securitisations exist, what opportunities they offer, and the benefits securitised credit offers a multi-asset portfolio.

Credit trumps residential property for headache-free income

Following on from the strong performance of global investment grade credit in 2023, the Australian credit market is emerging as a great diversifier and alternative to investing in other ‘safe haven’ asset classes.

What the private credit boom means for investors

The big 4 banks have pulled back from lending to SMEs and private credit funds have stepped in to fill the breach. Here's what investors need to know about the benefits and risks of including these funds in their portfolios.

Is the best value for Australian credit not in Australia?

Most Australian investors chasing the extra yield on major bank hybrids, or T1 securities, limit their activity to the domestic market, but there is a disconnect in pricing creating better opportunities offshore.

How to invest in the ‘reopening of Australia’ in bonds

As Sydney and Melbourne emerge from lockdown, there are some reopening trades in the Australian credit market which 'sophisticated' investors should consider as part of their fixed income portfolios.

Podcast: What did you do during the GFC? Warning signs and lessons for investors

The 2008 GFC actually started a year earlier in the global credit markets, but the equity markets ignored the warning signs. With hindsight, everyone had the chance to exit shares at elevated prices.

Can Australian credit continue to perform?

Australian credit markets have had a good run, and any investor tempted to exit the sector should consider whether a move now is too early in the cycle. A period of range-bound stability is the more likely outcome.

The dangers lurking for credit investors

Due to the growing risks to high yield or junk bonds, this is not the time to accept their tight spreads in the search for better returns. Investment grade bonds and dividend yields are likely to be more dependable.

Bubbles and the corruption of risk

With cash investments providing such poor returns, the search for yield has driven up share and property prices, some to unrealistic levels. It has also corrupted our sense of risk which is a dangerous combination.

Most viewed in recent weeks

An important Foxtel announcement...

News Corp's plans to sell Foxtel are surprising in that streaming assets Kayo, Binge and Hubbl look likely to go with it. This and recent events in the US show the bind that legacy TV businesses find themselves in.

Welcome to Firstlinks Edition 581 with weekend update

A recent industry event made me realise that a 30 year old investing trend could still have serious legs. Could it eventually pose a threat to two of Australia's biggest companies?

  • 10 October 2024

The quirks of retirement planning with an age gap

A big age gap can make it harder to find a solution that works for both partners – financially and otherwise. Having a frank conversation about the future, and having it as early as possible, is essential.

Welcome to Firstlinks Edition 578 with weekend update

The number of high-net-worth individuals in Australia has increased by almost 9% over the past year, and they now own $3.3 trillion in investable assets. A new report reveals how the wealthy are investing their money.

  • 19 September 2024

The everything rally brings danger and opportunity

Most market players today seek quick rewards and validation of opinion. Outsiders willing to combine new technology with old-fashioned patience and focused analysis can prosper.

The challenges of building a portfolio from scratch

It surprises me how often individual investors and even seasoned financial professionals don’t know the basics of building an investment portfolio. Here is a guide to do just that, as well as the challenges involved.

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