MARK MITCHELL - GENERATING INCOME
It's really important to understand that there are different kinds of asset classes that you can invest in. Shares are not the only way to go. Mark Mitchell is a Director of Daintree Capital, a boutique investment management company specialising in building fixed income credit (bond) portfolios. Mark explains everything about bonds. They are loans to governments or corporations. Depending on your circumstances they should be considered as part of your portfolio.
A large bank, for example, will have thousands of bonds on offer. They need money to fund their operations. They don't want to fund it all with equity because the more equity they sell that reduces the return for the equity holders. So if you're a bank, you get that money generally from three different sources, you get it from the equity investors, you also get it from people who give you a term deposit. From a bank's perspective, a term deposit is a short term loan. And the other way they generally get their funding is selling a bond offering to investors.
INTERVIEW TRANSCRIPT - UNEDITED
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Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation. Thanks to Christopher Soulos for music production out of Garlic Breath Studio https://www.facebook.com/GarlicBreathStudio.