Expand your search for cash
Money Magazine Australia|September 2022
Traditional fixed-income products are not getting a lot of love, but experts say alternatives such as corporate and private debt could offer good value
ANTHONY O’BRIEN
Expand your search for cash

With volatility high across most asset classes at present, it can be worth considering fixed-income alternatives that deliver income without a considerable uplift in risk.

“When we look across the world in fixed income, we are identifying a lot of attractive relative value in investment-grade securities,” says Adam Grotzinger, a senior portfolio manager at Neuberger Berman, an investment management firm.

“And you can achieve upwards of 5% yield pretty easily with a high-quality, straightforward investment-grade portfolio.”

He adds that corporate debt is attractive and believes the “triple B part of that market has some interesting value”: telecommunications, cable media and US banks are three industries that offer good value.

“We also like current production agency mortgages in the US, which are a high-quality liquid asset, backed by the full faith and credit of the US government,” he says.

Dania Zinurova, the portfolio manager for WAM Alternative Assets, says there are numerous fixed-income alternatives available to investors, and they can provide strong, risk-adjusted yields with low volatility within the alternative assets space.

She believes these investments can provide a powerful alternative to conventional fixed income. “Valuations on alternatives are done less frequently compared to more traditional asset classes, and so more wholly reflect long-term underlying fundamentals as opposed to short-term market volatility.”

Diese Geschichte stammt aus der September 2022-Ausgabe von Money Magazine Australia.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der September 2022-Ausgabe von Money Magazine Australia.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS MONEY MAGAZINE AUSTRALIAAlle anzeigen
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 Minuten  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 Minuten  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 Minuten  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 Minuten  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 Minuten  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 Minuten  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 Minuten  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 Minuten  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 Minuten  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 Minuten  |
July 2024