Australian Bank Hybrids: Navigating the Transition to Alternative Income Sources

Systematic equity strategies and disciplined diversification can help multi-asset portfolios thrive in unpredictable markets.

As direct lending matures and other private credit areas expand, active investors can apply relative value strategies across sectors – and even entire markets – to pursue enhanced outcomes.

The playbook for private credit is changing as a maturing direct lending market creates opportunities for active, relative-value-oriented investors.

Marc Seidner, CIO Non-traditional strategies, shares how investors should think about alpha opportunities across public and private credit markets amid the challenges of a fragmented global economy.

Unlocking durable income through discipline, active value creation, and local insight

Portfolio managers Rob Mead and Philippe Bodereau discuss how Australian investors can replace bank hybrids in their search for alternative income sources.

Philippe Bodereau, Portfolio Manager and Head of Credit Research, Europe, highlights the opportunities he’s identifying across the global banking sector to generate attractive income.

Explore insights on the neutral rate and rising term premium, highlighting the impact on U.S. Treasury Yields, risk compensation, and strategic duration positioning with market and economic charts.

The hybrid phase-out opens the door to optimised global fixed income portfolios offering competitive returns with lower risk.