Evan Metcalf
speaker
78 appearances
1 recordings
1 series
first heard Jun 2022
last heard Jun 2022
Evan Metcalf’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
Australian Finance Podcast · Bonds 101: how to invest in bonds & what to look out for · 22 Jun 2022
podcast
In the bond market, it's very different.
You may have a major corporation, may have
hundreds of different bonds outstanding at any one time.
So in terms of the actual number of potential securities involved in a bond kind of benchmark index, it's a lot, lot bigger than an equity index covering equivalent markets.
So you may have a benchmark bond index with 5,000 bonds in it, for example, which is, you know, you think about the MSCI world or one of those broad equity indices that might have somewhere in the
the range of 1,000.
So they're very big in terms of number of constituents.
So even for an ETF, buying all of those bonds is effectively not possible and impractical.
Some of them are illiquid if there's smaller issues.
Some of them are extremely small weight, so it doesn't make sense to buy them to replicate the index.
So most bond ETFs actually
use a sampling method where they don't buy every bond in the index.
They buy a collection of bonds that they feel is representative of the particular index.
So even at the ETF level and the institutional access level, it's not always possible to buy every single bond.
So think about it from a retail investor's point of view, it's nearly, well, it is completely impossible and impractical
And the way that retail investors access the market as well isn't the scale.
You can't buy small portions of some of these bonds.
So ETFs really have a big role to play in packaging these portfolios together and giving people easy access to the bond market that way.
Showing 61–78 of 78 · page 4 of 4
← Previous