Hugh Lam

speaker
582 appearances 2 recordings 2 series first heard May 2026 last heard 1 Jun

Hugh Lam’s voice in public audio — every appearance, attributed to the second.

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recordings per month · last 12 months
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Recordings per month over the last 12 months — 2 in all, peaking in Jun 2026 with 1.

Appearances

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So the ending sort of portfolio is a floating rate type of product.
Again, you're really benefiting when rates sort of rise.
And so these are the two building blocks.
And what we do is we borrow money from a prime broker of ours and we leverage it up.
Now we leverage it up by three times.
Now some people might be like, whoa, that's a lot.
That seems like a lot of leverage, right?
The thing is, it's okay to do that because we are using very high quality, very low volatility building blocks.
So if you think about Australian investment grade corporate bonds, if you think about the volatility of its capital, it's not going to move around as much as say shares.
Now, if you were to 3X a shares portfolio,
even more so a single stock, then you're absolutely gonna run the risk of major capital losses because you're gonna incur what we call volatility.
Lots of bouncing up and down.
So we've done the math and we've figured out, okay, three times is okay and is the acceptable amount in order to achieve our desired yield.
And so, really the essence of this product was really born out from a couple of things.
Investors wanted a high yielding credit alternative exposure.
We do have a few existing ones, as I mentioned, but people wanted higher yielding products.
really because hybrids, as we know, are being phased out.
There is a pocket of the market where capital is seeking other alternatives.
We've seen tier two exposures picking up a bit of that interest.
We want it to be a little bit more innovative and capture an enhanced product.
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