Education Hub

TwentyFour's Fixed Income 101

Our Fixed Income 101 series covers common fixed income investment themes and some more technical portfolio management techniques.

The goal of income investing is to ensure that your portfolio generates a steady source of revenue regardless of market conditions.

Fixed Income 101 Investing for income with bonds

Fixed Income 101: Income investing

The goal of income investing is to ensure that your portfolio generates a steady source of revenue regardless of market conditions.

Fixed Income 101: Comparing yields in different currencies

Fixed income managers always want to have the flexibility to look for the best value across their investment universe, and in our view they therefore need the capacity to buy bonds in different currencies.

Fixed Income 101: Hedging currency risk

Hedging currency or foreign exchange (FX) risk is a key decision for any manager running a diversified fixed income portfolio. Currencies are inherently volatile, so whether and how FX risk is managed can have a material impact on a portfolio’s risk and return profile.

TwentyFour's Everything you need to know about… series

Our Everything you need to know about… series walks you through the typical structure, benefits and risks of some of the more specialist securities that often feature in TwentyFour portfolios, such as subordinated bank bonds and asset-backed securities.

Everything you need to know about corporate hybrids

Corporate hybrids are a type of bond issued by companies – they are known as hybrids because they combine certain features of debt and equity.

Everything you need to know about ABS

Asset-backed securities (ABS) are a type of bond, typically issued by banks or other lenders. What makes ABS different to conventional bonds, such as government or corporate bonds, is that they are ‘secured’ against a diversified pool of loans with similar characteristics.

Everything you need to know about AT1s

Additional Tier 1 bonds (AT1s) are part of a family of bank capital securities known as contingent convertibles or ‘Cocos’. Convertible because they can be converted from bonds into equity (or written down entirely), and Contingent because that conversion only occurs if certain conditions are met, such as the issuing bank’s capital strength falling below a pre-determined trigger level.

Everything you need to know about CLOs

Collateralised Loan Obligations, or CLOs, are bond instruments issued to fund a specific pool of loans, typically senior secured or ‘leveraged’ loans, to companies. The bonds are split into tranches that can carry different ratings (and yields) according to how senior they are in the CLO’s capital structure, normally from AAA notes at the top to equity notes at the bottom.

TwentyFour's animated explainers

Our animated explainers are a complete visual guide to more complex and commonly misunderstood parts of fixed income such as Additional Tier 1 (AT1) bonds, residential mortgage-backed securities (RMBS), collateralised debt obligations (CLOs) and Corporate hybrids.