Yield Without Whiplash

Scott Rundell, CIO of Mutual Limited, addresses the income challenge faced by retirees, noting the volatility of bank stocks despite consistent dividends. He highlights floating rate notes (FRNs) as a more stable alternative, offering lower capital risk and quicker recovery during market disruptions.

Scott also notes the strength of the Australian FRN market, with over $250 billion issued by major banks, providing strong liquidity and reliable access to capital. He emphasizes that FRNs offer predictable income and capital stability, making them well suited for income-focused portfolios.

Watch the full update below for more insights.