Insights

Over the 12 months to 31 August 2021, the Perpetual Credit Income Trust (ASX:PCI) has returned 6.8%, outperforming the RBA Cash Rate (Benchmark) by 6.8%.

The principal amount or principal is the original amount of investment in an asset, separate from any earnings or interest accrued. It is therefore crucial to understanding both lending and investing practices.

All types of bonds pay interest to bondholders and the amount of interest paid out is known as the coupon rate. The issuer of the bond agrees to make interest payments equal to the coupon rate to investors.

Portfolio Managers, Michael Korber and Anne Moal provide an update on markets, how the PCI portfolio has been managed in the current market conditions and the opportunities they are seeing in credit and fixed income.

Over the 12 months to 30 June 2021, the Perpetual Credit Income Trust (ASX:PCI) has returned 8.3%, outperforming the RBA Cash Rate (benchmark) by 8.2%.

Bonds are issued as forms of tradable debt with the bond issuer being the borrower and the purchaser or bondholder the lender. Bond issuers may include companies, governments, supranational entities and municipalities.

The degree to which two securities move in relation to each other is called correlation. It is only when positions are held across multiple uncorrelated asset classes that a portfolio is genuinely diversified and better able to handle market volatility.

Investment grade is a measure of a company's credit and the probability that it will repay issued debt. Fixed income assets can be rated by a ratings agency who assess the ability of an issuer to meet its financial obligations.

Over the 12 months to 31 March 2021, the Perpetual Credit Income Trust (ASX:PCI) delivered a positive return of 8.6%, outperforming the RBA cash rate by 8.5%. Read More.

Corporate bonds can be fixed interest or floating rate investments. This means that the interest rate on the money lent by the investor is either set in advance or linked to a variable interest rate.

Michael Korber, Head of Credit and Fixed Income, on Livewire. In this video, Korber breaks down the strategy behind the Perpetual Credit Income Trust and the outlook on corporate credit through 2021.

Securitisation is the process of pooling financial assets and converting them into one financial instrument. Securitised assets are generally issued by special purpose vehicles, such as trusts or companies, that hold the assets.