Category

Of Interest - Fixed Interest / Credit

Company

Tyndall Investments

Research Paper

The reduction in Australian Federal and State government debt and subsequent lower bond issuance over the past 15 years, prompted market participants to look to the private sector (particularly overseas) to provide the supply of bonds. The massive fiscal stimulus packages of the past year have however seen governments step back into the bond market to fund their ballooning deficits and use their financial strength to help guarantee the borrowings of those entities deemed to be important. This research paper explains that the effect will be to produce a marked change in the risk profile of bond funds in regards to their potential default risk and where they are likely to source future alpha. Will this change the risk profile of fixed interest funds forever and is it the end for cash-related funds?

Presentation

Roger Bridges, Head of Fixed Income, Tyndall/Suncorp Investment Management