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Credit Risk

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Global credit valuations: are we there yet?

The market has seen a major widening of credit spreads as investors demand greater compensation for liquidity risk. Has the market reached the point where it offers value?

Lessons from the Volkswagen scandal

When a company fraud is uncovered there are many losers, and companies are not run to benefit bondholders. The main protection against such unforeseeable risks is to maintain a well-diversified portfolio.

A beginner’s guide to peer to peer lending

Advances in technology have allowed peer to peer lending to thrive, offering credit to more potential borrowers at lower interest rates than those offered by banks. How does it work and will it last?

Are bonds liquid?

There's no straightforward answer to the question of whether a bond is liquid. Unfortunately, at the time when you most want to sell, everyone is likely to be running for the exit.

An idiot’s guide to bond funds

In response to a reader's question regarding bond funds, we asked our bond guru to explain, in layman's term, the workings of bond funds and what features to look for before investing in this asset class.

Personal investors need credit reporting too

Individuals have their credit history checked by financiers whenever they apply for finance. Why isn’t there a way for retail investors to check the credentials of financial institutions before investing their money?

Managing credit risk requires healthy dose of cynicism

In the world of credit risk, you need to understand the capacity of the borrower to pay what they’ve promised, then assume that they will let you down anyway and avoid concentrating your portfolio.

Give this risk the credit it deserves

The risk that bond investors should be most concerned about is credit risk. Market risk does not produce a permanent loss of capital, and higher yields result in increasing returns over time.

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Retirees facing steep increases for basic items

ASFA has updated its tables on how much money is needed for a 'comfortable' or 'modest' lifestyle in retirement, but there are some prices rising well ahead of inflation.

Let’s stop calling them ‘bond proxies’

With cash and term deposit rates at all-time lows, and fixed interest bonds not much better, investors are looking for ‘bond proxies’ to deliver more income. But is ‘proxy’ a misnomer, and what are they anyway?

Adele Ferguson on ‘Banking Bad’ and weaving magic

The journalist most responsible for the calling of the Royal Commission takes care not to be roped in by everyone with a complaint to push. It takes experienced judgement to gather the right information.

Six warning bells against property spruikers

Property spruikers use common techniques, and con men will increasingly target older people who feel they do not have enough financial independence for their retirement years.

Helping your children build their super

It has become more difficult to build large superannuation balances with contribution caps and more people paying off home loans for longer. How can wealthy parents help their adult children?

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