This is the first financial institution hybrid of 2016 and we expect more over the next 12 months. Recent poor hybrid performance has demonstrated that prior issues were cheap funding for the banks and the institutions that shied away from the market were right to do so.

Even if you don’t own shares in your own name, you can be certain that your superannuation fund has invested in them on your behalf with allocations of around 50 per cent common and some as high as 70 per cent.

On occasion it comes about that SMSF trustees take on the burden of investing on behalf of their members, which can be a worry.

Are you sick of chasing the best returns on term deposits? Floating rate bonds whose interest income adjusts quarterly to reflect current expectations of interest rates, may be a solution. Here are three suggested floating rate bonds.

AA+ rated from Standard and Poor’s and with more than US$200bn of cash on its balance sheet Apple bonds are considered to be safe haven investments

Recent well-reported sharp declines in shares and step-like rebounds are likely to be more frequent in future. If you were worried about the value of your portfolio, then it’s a sign that you need to rethink your asset allocation and think about increasing the proportion of defensive assets you hold including deposits and bonds.

The debate rages around the proposed Carmichael coal mine development in central Queensland. Investors have reportedly spent over $1 billion on early development of the project but the expansion has been met with fierce opposition from conservationists. It is a polarising and emotive discussion which can be confusing for investors.

Anyone with health insurance or paying private school fees will appreciate that prices increase every year and often by far more than inflation. The prices of certain other goods and services may decline in any given quarter, but overall there has only been one negative quarterly inflation rate in the last 25 years, making inflation a critical consideration when investing.

Last week, Westpac brought a new listed hybrid to the market. I’m expecting it to be joined by an avalanche of new issues to meet higher APRA capital requirements, so I think it is timely to suggest some tips on assessing them.

This week, the Australian Prudential Regulation Authority announced higher capital requirements for residential mortgages for the four major banks (ANZ, CBA, NAB, Westpac) and Macquarie, in order to offset mortgage risk.

Greece is a small country that makes up only tiny proportion of the European Union economy but the prospect of it defaulting on its debts last week saw its 10 year bond yields move dramatically higher.

I heard a fascinating account of a client’s bond strategy last week that I think is worth sharing because it perfectly illustrates why investors should not over-rely on any one asset class.

Heightened volatility has investors seeking safer investments. Derisking strategies include increasing your cash holdings, preferring investment grade bonds over high yield and investing in “safe havens” such as the US dollar

One of the big attractions is that control, allowing you to diversify away from companies where you already own the shares. Not all bonds will suit all investors.

I was lucky enough to attend the recent Economic Society lunch in Brisbane and hear the speech by Reserve Bank Governor, Glenn Stevens. He gave little away regarding the direction of interest rates, although there were quite a few inventive questions designed to trip him up.

In recent years, many people have become more aware of the social and environmental impact of their investments and have decided they want their funds to support worthwhile initiatives.

This month exchange traded bond units (XTBs) were launched on the ASX as a way for retail investors to buy into the wholesale bond market. Investors buy units in a trust which invests in a single bond

In a low-rate market, a small improvement in the return on your cash deposits can add up to more than you think.

Investing directly or through managed bond funds has advantages and disadvantages; just like investing in shares, the decision depends upon the individual.  While my preference is direct investment, there are times when choosing a fund manager to look after your bonds makes sense. 

Property investors know and respect the mantra; location, location, location. In bond and fixed income markets, the equivalent of location is capital structure, which determines who gets paid out first in the event of a company wind-up.

With the RBA cutting the official cash rate to 2%, now is a good time to reassess your investment portfolio. Consider your current allocation to defensive assets. And if new to fixed income investment consider bonds today. Here is a list of key considerations for building a bond portfolio.

In a low yielding investment environment smart investors can still boost their returns by taking on carefully selected risk as part of a diversified portfolio.

Too often regulators seem to forget that while a rate cut is positive for those with a mortgage, it sends retirees back to their cashflows to try and work out how they can live off a declining income stream.

There is a very wide range of foreign currency bonds available. Yield to maturity in USD bonds range from -0.55% to over 18%. This article considers the risks and well as the probabilities of default for USD bonds using the S&P historic global default table.

While bonds are lower risk than shares in the same company, they carry some of the same risks. They also have unique risks that can be used to your advantage under various economic conditions.

Australian investors upset about low interest rates can at least be thankful they don’t live in Europe where some governments have taken the extraordinary step of issuing bonds with negative returns.

Australia is a privileged member of an elite club. It is one of only nine countries that have the highest AAA or equivalent credit rating from all three major credit rating agencies.

This is the second article in a three part series. Combined, the articles explain that bonds are appropriate investments across all economic cycles.