Hosted by Australian financial and investment advisers, Dylan Pargiter-Green & Luke Laretive, Wealth & Toil helps Australians navigate the global financial markets, optimise their finances, and strategise to get the most out of their businesses. We'll share some of our client's case studies, investment tips and a few of the lessons we've learned running financial advice and investment management companies.
General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
Hosted on Acast. See acast.com/privacy for more information.
Hosted by Australian financial and investment advisers, Dylan Pargiter-Green & Luke Laretive, Wealth & Toil helps Australians navigate the global financial markets, optimise their finances, and strategise to get the most out of their businesses. We'll share some of our client's case studies, investment tips and a few of the lessons we've learned running financial advice and investment management companies.
General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
Hosted on Acast. See acast.com/privacy for more information.
In this episode of "Wealth and Toil," hosts Luke Laretive and Dylan Pargiter-Green discuss the key elements of fixed interest investments.
Fixed interest, or fixed income, is a crucial component of a diversified investment portfolio. It's typically less volatile than equities and offers a more stable return, primarily through interest payments from bonds.
Mechanics of Fixed Interest:
Lending money to entities (corporate or governmental) and receiving regular interest payments (coupons), with the principal amount typically returned at the end of the bond's term.
Capital Structure:
The basics of a company's capital structure—assets, liabilities, and shareholder's equity. The priority of debt repayment over equity in cases of financial distress.
Benefits of Fixed Income:
Fixed income is portrayed as a stabiliser within a portfolio, offering protection against market volatility and often providing negative correlation with equity markets.
Types of Risks in Fixed Income:
Credit Risk:
The risk associated with the debtor's ability to make scheduled payments.
Interest Rate Risk:
Discusses how bond prices are inversely related to interest rate changes. The concept of duration, a measure of sensitivity to interest rate changes.
Liquidity Risk:
The liquidity aspect of bonds, some bonds are more tradable than others.
Market Dynamics and Strategy:
How different environments, like changes in interest rates, affect bond prices and yields. Beware recency bias and understand the long-term nature of bond investments.
Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:
https://www.boldwealth.com.au/
Hosted on Acast. See acast.com/privacy for more information.
