Spectrum Insights - The worst of both worlds
Australia’s RBA has its foot on the accelerator while the global bond markets are tapping on the brakes. Just when Australia’s economy could do with some stimulus it faces some headwinds from abroad. Rising bond yields internationally are spilling over into our bond markets. This hurts fixed rate bond prices. It also makes borrowing more expensive. Mortgage stress from within our highly indebted households in Australia is already on the rise. To add to this Australia’s “AAA” rating is under pressure and there is a lot to be worried about when investing in a generic Australian dollar (A$) bond fund. At Spectrum we are tackling this by 1) investing mainly in floating rate notes – reducing the impact from rising fixed rate bond yields or falling prices 2) avoiding bonds from issuers that rely on residential property development and 3) tilting our weighting towards overseas issuers of A$ bonds. The aim is to protect investors’ capital while delivering reasonable income for 2017.
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Damien has around 25 years of experience in global credit markets. He has worked in Sydney, London, Hong Kong and Singapore. Much of Damien’s experience was gained from working with Credit Suisse both in Singapore and Sydney where he was Head of Asia Pacific Credit Research from 2004 – 2012. His experience captures a vast array of credit deals including mezzanine finance for both corporates and banks as well as highly structured finance facilities. In addition to Credit Suisse, Damien has worked in the credit team at AMP in Sydney, and led the credit research teams of ING Barings and Barclays Capital in Asia.
Damien holds a Masters of Business Administration from the University of Queensland, a Bachelor of Financial Administration from the University of New England and a Graduate Diploma in Applied Finance from the Securities Institute of Australia.
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Spectrum Asset Management
Damien has around 25 years of experience in global credit markets. He has worked in Sydney, London, Hong Kong and Singapore. Much of Damien’s experience was gained from working with Credit Suisse both in Singapore and Sydney where he was Head of ...
Expertise
Spectrum Asset Management
Damien has around 25 years of experience in global credit markets. He has worked in Sydney, London, Hong Kong and Singapore. Much of Damien’s experience was gained from working with Credit Suisse both in Singapore and Sydney where he was Head of ...
Expertise
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