Livewire Markets

The countdown is on! Join us at Livewire Live 2024, our annual investor event. What makes it special? 🎓 Top-tier speakers sharing exclusive insights 💡 Fresh formats and electric energy 🏛 Hosted at the stunning Art Gallery of NSW Connect with fellow investors and learn from their experiences and rub shoulders with some of Australia’s leading investors.   Livewire Live 2023 was rated 9.3/10. We're aiming even higher in 2024. Don’t miss out on this unique thought leadership event. See you there!

Ahead of the return of Signal or Noise later this month, we're looking back at some of the most interesting conversations we've had so far this season. During our Economists Roundtable episode, AMP Deputy Chief Economist and series regular Diana Mousina shared with us the one number every investor should be looking out for in the Q2 inflation print. You can check out an excerpt of that episode here and the full episode in the comments.

The Yarra Capital Management Enhanced Income Fund held more than 50% of its portfolio in Tier 2 bank paper as at the end of May, with portfolio manager Roy Keenan adding that it's “probably the highest it’s ever been”. Why the love for Tier 2 bank paper? In March, rating agencies Standard and Poor’s and Moody’s both lifted the credit rating of hybrid capital, meaning major Tier 2 bank paper is A-rated, “which is a really high credit quality”, says Keenan. “I continue to believe that Tier 2 credit spreads will grind in tighter and hence why we’re positioned that way” In an interview as part of Livewire's 2024 Income Series, Keenan also discusses why credit investors love new issuance, how floating-rate securities have been driving performance, and why he wouldn’t mind adding a bit more risk to the portfolio. 

On the last episode of Signal or Noise, Michael Price from Ausbil Investment Management Limited discussed three #ASX stocks that can provide a combination of high income and capital growth opportunities. Catch the excerpt here and the full episode in the comments:

What is the rarely taught but critical issue that is a beacon for good and bad management in product businesses? We recently had the pleasure of hosting Bellroy’s Co-CEO Lina Calabria on the Success and More Interesting Stuff podcast hosted by Matthew Kidman. Bellroy is an Australian success story now making waves on the global stage with household names, like Apple, now selling their products. In this short clip Lina explains why inventory management can be make-or-break for product businesses like Bellroy. Find the full episode below. Apple: https://lnkd.in/gcrNqwWU Spotify: https://lnkd.in/gmPm62YG Livewire: https://lnkd.in/gQJZ2G4Y

Are interest rate settings tight enough already in Australia? PIMCO’s Adam Bowe CFA, GAICD recently joined Livewire’s Rules of Investing podcast to share his thoughts on a topic dividing the market right now. “I think it is very hard to calibrate and make that assessment just by looking at the cash rate.” #1 Households are struggling  #2 Spending is constrained #3 Inflation is coming back down The caveat is that house prices continue to rise and perhaps that suggest rates are high enough yet. Full episode: https://lnkd.in/gzG5m72y

On the last episode of Signal or Noise, Amy Xie Patrick, Head of Income Strategies at Pendal, shared with us her views on what she wants to be doing with fixed income allocations in portfolios as part of our Income Investing show. Catch this excerpt from the episode here - and the full episode in the comments!

Once upon a time, the world of investing was simple – cash, bonds, and equities were the holy trinity. Times change, however, and for the first time recently, the amount of passively managed assets on US stock exchanges now equals the number of actively managed assets. While investors have changed their approach, fewer companies are tapping stock exchanges to raise capital. Rather, the big growth in market capitalisation has been in private markets. “With this critical mass comes opportunity for retail investors to participate in private markets which, until now, have largely been the domain of the institutional, and to a lesser degree wholesale investors. And it is providing a formidable wall of opportunity for investors to consider”, says La Trobe Financial’s CIO, Chris Paton. As part of Livewire Markets 2024 Income Series, Paton explains the growth of private credit, the current state of the space, and the La Trobe Financial approach to the opportunity set. Full interview available in the comments section below.

Taking care not to confuse the words “fixed” and “constant” is one of a few key things investors need to keep in mind if using bond ETFs to generate income. That’s according to VanEck’s Cameron McCormack. Speaking with us as part of our Income Series, he reminded investors that irregular or inconsistent distributions can result from income-oriented ETFs. Alongside ASX’s Rory Cunningham, we explored this and other lesser-known attributes of fixed income ETFs in our recent wire. #investing #income VanEck Australia

Do you find it hard to know where to invest across the broad spectrum of fixed income opportunities? The sector is growing rapidly with more options becoming available to investors presenting both opportunities and challenges. Affluence Funds Management recently launched the Affluence Income Trust which takes the complexity out of managing a fixed income portfolio. The Trust, which pays regular income, aims to take advantage of the best opportunities in both public and private markets. Daryl Wilson spoke with Livewire’s James Marlay about his views on the outlook for markets, where he is seeing opportunities to generate income and the compelling backdrop for investing in fixed income. https://lnkd.in/gs3Z9x8p