E15: For Your Ears Only... Bonds with Richard Usher-Jones

After a difficult 2022 for bonds, higher interest rates have created increased opportunities for fixed income investors. So to kick off 2023, this episode of The Unlimited Podcast will cover “Bonds 101” and opportunities in fixed income investing with Richard Usher-Jones, Portfolio Manager at Canso Investment Counsel.

Richard has 30+ years of industry experience, achieving his Canadian Investment Manager (CIM) designation, and is a Fellow of the Canadian Securities Institute (FCSI). Since 2009, Richard has been a Portfolio Manager with Canso, as well as the President & CEO of Lysander Funds. Canso manages over $35 Billion in assets, specializing in fixed income.

In this episode, Brian and Richard go back to basics to explain bonds and how they work, who issues bonds, bond ratings, and much more. They also review Canso’s approach to fixed income investing and opportunities Richard is seeing in the current environment.

0:00: Disclaimer

0:44: Intro

2:32: Introduction to Richard & Canso

Bonds 101

7:46: Bond Market vs. Equity Market

9:06: What is a bond & how does it work?

10:34: What is a “coupon payment”?

12:50: Who is issuing bonds?

15:32: What determines the interest rate of a bond?

16:59: What is the relationship between bond prices and interest rates?

22:51: What do bond ratings mean?

30:46: Who gets the highest bond ratings?

32:08: What is a safer investment, stocks or bonds?

Bonds 201

30:04: What is the yield curve?

36:58: What does the yield curve look like?

40:17: Why include bonds in a portfolio?

44:03 Why should investors consider actively managed portfolios?

46:00: How does Canso help issuers?

50:19: Canso’s outlook for the bond market & interest rates

52:17: How is Canso structuring portfolios for this environment?

54:20: How should investors allocate bonds in their portfolios?

55:42: What would Richard do if his world was Unlimited?

56:57: Outro

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