Michael Elsworth, Manager, Fixed Income, Lonsec Managers within the Unconstrained Bonds and Specialised Income sectors have been shifting their portfolios in response to the uncertain economic backdrop. Many Government Bonds and Investment Grade Credit securities, the traditional ballasts of fixed income portfolios, are trading at historically tight credit spreads – which does not bode well for […]
Michael Elsworth, Manager, Fixed Income, Lonsec In December 2024, APRA announced the phase-out of Additional Tier 1 securities (AT1 or hybrids) as eligible bank capital, a move that will see the $40+ billion Australian bank hybrid market shut by 2032. This announcement of the phase-out of hybrid securities issued by Australian banks has created a
The great Australian bank hybrid phase-out Read More »
Mike Grdosic, Senior Investment Analyst, Lonsec Research and Ratings Local Emerging Market Debt (EMD) government securities represent a differentiated asset class that can potentially offer diversifying benefits to portfolios. This is particularly relevant today, given rising levels of developed market government debt and potential ‘currency debasement’ risks. Moreover, developed market non-government marginal yields, e.g. corporate
Emerging Market Debt: A Diversifier in a Changing Global Landscape Read More »
