Private debt can provide investors with attractive returns and a natural hedge against rising interest rates. However, the Your Future, Your Super performance test imposes constraints on super funds’ allocation to this asset class due to tracking error. The post Private debt offers attractive returns but allocation constrained by performance test appeared first on Investment Magazine ..read more

Investors may have to fundamentally rethink their return and risk expectations with experts arguing there are signs that stock and bond return correlations could turn positive and stay that way for years or even decades. The post Shift to positive stock-bond correlation could increase risk, reduce returns appeared first on Investment Magazine ..read more

Global green bond issuance is likely to hit US$1 trillion ($1.46 trillion) next year spurred by the European Union and Japan, according to estimates by the Climate Bonds Initiative, notwithstanding market volatility caused by the war in Ukraine, soaring energy prices and supply chain issues. The post EU, Japan to drive global green bonds to new record in 2023 appeared first on Investment Magazine ..read more

Investors seeking Australian dollar returns can use emerging market debt to enhance yield and reduce volatility according to MFS International’s income portfolio manager, Ward Brown. The post Yield hunters should turn to emerging market debt appeared first on Investment Magazine ..read more

The low yield environment of recent years had put a focus on the positive correlation between bonds and equities according to Laura Ryan, head of research at fixed income investment boutique, Ardea Investment. The post Volatility more important than correlation when looking at bonds appeared first on Investment Magazine ..read more

Private credit has a unique opportunity to add to the battle against climate change and it has the potential to be more effective than the market may currently be aware, according to Blackstone Credit’s sustainable resources global head Robert Horn. The post Debt holders start driving change to net zero appeared first on Investment Magazine ..read more

AustralianSuper’s Katie Dean questioned what effect US Federal Reserve moves were likely to have on inflation and the timing of when to shift back into fixed income. The post Too early to move to overweight in fixed-income allocations appeared first on Investment Magazine ..read more

Phenomenal growth in direct lending to Australian corporates will continue, says Aware Super’s Mike Cowell The post Funds step into private corporate lending where banks are constrained appeared first on Investment Magazine ..read more