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The time for bonds has come

Bonds have had a miserable time of it for the past three years. Yet with central banks almost done with interest rate hikes and inflation set to fall towards central bank targets, bonds look primed for a bounce back.

Bond opportunities in a higher rate world

As investors navigate a potential recession and the possibility of higher interest rates for longer, the lure of fixed income is understandable. Here a primer to help investors decide which bonds may be best for them.

Is this the start of a generational bear market in bonds?

It's carnage in bond markets now with bonds potentially heading for a third straight year of losses, something that hasn't happened over the past 100 years. Is this the beginning of a decades-long bond bear market?

Investors need to look beyond bonds for safety

Australian investors have been allocating more to fixed income assets this year. Persistent inflation is a key risk for bonds, and that's where gold can play a diversifying role within an investment portfolio.

Do private investments belong in a diversified portfolio?

While private investments remain a potential source for differentiated equitylike return streams, their structure merits caution for retail investors. These investments can easily turn south without access to high quality teams.

Why are SMSFs holding so much cash?

About 20% of the $890 billion in SMSFs is allocated to cash and term deposits. While understandable to an extent, more of this money is likely to make its way into bonds given the now attractive yields on offer.

Why have bond fund distributions been shrinking?

The momentous rise in government bond yields since last year has had one unexpected effect: shrinking income distributions. This may be surprising given bond managers have been able to reinvest at progressively higher yields.

Hunting for value in fixed income

After a dismal year, bonds' prospects are brightening. For investors looking to maximise returns from investment grade assets while also reducing interest rate risk, asset backed securities and RMBS provide opportunities.

Six guidelines on how to allocate SMSF cash

Major bank transaction accounts are paying poor rates on cash at exactly the time when many SMSF trustees are holding more cash than usual due to tough bond and equity markets. Here are some rules and opportunities.

Income opportunities in global bonds

With BBB-rated investment grade credit in solid companies offering yields above 5% - a higher yield than what is currently available in most equity markets - there is plenty of opportunities for yield in fixed income.

The inflation inflection: Adjusting to the new paradigm

The Covid-19 pandemic, and the range of policies aimed at mitigating its impact, has triggered a return to levels of inflation unseen for 40 years. Investors need to prepare for persistently higher inflation.

Fixed income solutions in a rising rate environment

Floating rate bonds protect investors from capital losses of long-duration fixed income as rates rise. Hybrid structures offer higher yields backed by strong banks issuing on both the ASX and in unlisted OTC markets.

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