Roy Keenan

Pushing bank AT1s into extinction well before APRA’s 2032 cut-off is of natural concern to many fixed income investors. Roy Keenan, Yarra Capital’s co-head of fixed income, looks at the implications and opportunities.

Fixed income has evolved tremendously over the decades, but one maxim Roy Keenan has stuck with has lost none of its utility; stick with a process that’s tried and tested, and you’ll keep things from falling apart.

A higher for longer interest rate environment and likely default cycle in high yield means investment grade credit is once again in the hot seat.

As we approach the bottom of the current cycle, fixed income is back to playing its traditional defensive role, says Yarra Capital Management’s Roy Keenan. To get equity-like returns without exposure to defaults, investment-grade credit should do the trick.