Hugh Lam

The yields on Australian government bonds are starting to look quite attractive.

Yes, there is a risk if the RBA continues its hiking cycle, then capital losses on those bonds do materialize.

But at the same time, you are clipping 5% income annually.

And so that almost offsets part of that

perceived or potential capital loss whilst adding in some you know uh optionality or a hedge you know if a recession does occur yeah um but yeah bonds and duration can be you know quite a interesting and complex topic and you really have to understand you know what your views are as you mentioned around the economy and interest rates in order to make that bet effectively so

Mine's the third, yeah.

Yeah, my number three is eCRED.

So that's E-C-R-D.

That's Enhanced Credit Income ETF.

Again, recently launched.

So this is a little bit more of a complex product, but I'll help us walk through it.

ECRD is a credit income ETF.

So it gets its underlying exposure through two of our existing ETFs.

Okay, so two ETFs that already exist.

Already exist and then invest into each of them 50-50.

Those two ETFs are BSUB, B-S-U-B.

So that's subordinated tier two bonds.

The second one is HCRD, which is H-CRED.

That is corporate investment grade bonds, but interest rate hedged.

There's no duration in there and we hedge that risk out.