Why Yarra is long this asset class for the first time in years
2022 was miserable for bond investors. Now, as Roy Keenan explains, they have more opportunities than they know what to do with!
2022 was the worst year for bond investors in decades - and by a country mile at that. Relentless interest rate hikes from central banks forced fixed income investors to scan the market for opportunities - all of which provided a high risk-reward ratio. But as we near the end of all those rate hikes, opportunities are now popping up left, right, and centre.
In the Australian government bond space, yields are falling. In some tier-two paper, you can now get 6-7% returns. And we're continuing to add duration to our client portfolios.
So why are we buying so much?
As I explain in the following video, there is now no need to take as much risk to find returns as long as you keep a quality bias in your portfolio.
But in spite of a greatly increased opportunity landscape, there is only one asset class that my team and I are particularly bullish on. You'll also find out what that is in the following video.
Access to regular, stable income
The Yarra Enhanced Income Fund seeks to deliver higher returns to investors than traditional cash management and fixed income investments. Learn more by visiting our website.
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Roy is a senior leader within the Fixed Income team at Yarra Capital Management, focusing on Australian Fixed Income and Credit. He has over 30 years’ investment experience both in asset management and trading, specialising in credit products since 1995. He has been part of the investment management team for the Yarra Enhanced Income Funds since the Funds’ inception in 2002 and continues to manage these Funds. Roy is also co-portfolio manager to the Yarra Income Plus Fund. Before transitioning to Yarra Capital Management, Roy was Head of Australian Credit at Goldman Sachs Asset Management.
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Yarra Funds Management Limited (ABN 63 005 885 567, AFSL 230 251) (‘YFM’) is not licensed to provide personal financial product advice to retail clients. The information provided in this video contains general financial product advice only. The advice has been prepared without taking into account your personal objectives, financial situation or particular needs. Therefore, before acting on any advice, you should consider the appropriateness of the advice in light of your own or your client’s objectives, financial situation or needs. The information set out in this video has been prepared in good faith and while Yarra Funds Management Limited and its related bodies corporate (together, the “Yarra Capital Management Group”) reasonably believe the information and opinions to be current, accurate, or reasonably held at the time of publication, to the maximum extent permitted by law, the Yarra Capital Management Group: (a) makes no warranty as to the content’s accuracy or reliability; and (b) accepts no liability for any direct or indirect loss or damage arising from any errors, omissions, or information that is not up to date.
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Roy is a senior leader within the Fixed Income team at Yarra Capital Management, focusing on Australian Fixed Income and Credit. He has over 30 years’ investment experience both in asset management and trading, specialising in credit products...
Expertise
Roy is a senior leader within the Fixed Income team at Yarra Capital Management, focusing on Australian Fixed Income and Credit. He has over 30 years’ investment experience both in asset management and trading, specialising in credit products...
Expertise
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