How to make money from credit despite lower rates

Chris Joye, AFR columnist and portfolio manager at Coolabah Capital, is a prolific and thought-provoking commentator on economic and credit topics; he also runs a number of credit strategies which are unlike the traditional buy-and-hold fixed income strategies most retail investors are generally familiar with. So is this area of credit for you, and how do you make room for it in a traditional portfolio? 

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In part one of this lengthy and insightful discussion, Chris tells:

• Why he only buys floating (rather than fixed) rate securities,
• Why he thinks Australian term deposits offer very good value,
• Why the hybrid market is imperfectly priced, offering potential for excess returns
• At which point he believes bank shares will be worth buying, and
• How to get ‘edge’ and deliver meaningful returns in fixed income.

You can access this and previous episodes of the Your Wealth podcast now on iTunes, Podbean, Spotify or at nabtrade.com.au/yourwealth

This podcast is somewhat longer than usual, so if you’re short on time, consider listening at 1.5-2x speed, which should be shown on the screen of your device as you listen. This won’t just reduce your listening time; it has also been shown to improve knowledge retention.