Coolabah Capital Investments has developed models to make the most of mispricings in bond markets. Its founder explains why billionaires are now buying into a once boring bond market.
Video / NZHerald
A fixed income investment firm that trades up to A$400 million ($433m) in bonds every day will soon be seen on the red rugby uniform.
Coolabah Capital Investments, based in Sydney, has just shy of $10 billion in funds under management and has traded A$80b ($86.6b) in bonds so farthis year.
It’s just signed on as a sponsor of the Crusaders Super Rugby team - signalling its push into the New Zealand market before it officially sets up shop in Auckland.
“We’re one of the fastest, most accurate, most successful bond traders on the planet and the Crusaders are unambiguously the most successful provincial rugby side on the planet,” Coolabah founder and chief investment officer Christopher Joye told the Herald’s Markets with Madison.
Coolabah Capital Investments has signed as a sponsor of the Crusaders Super Rugby team. Photo / photosport.nz
That type of operation saw it turnover up to 200 bonds in its portfolios as many as 20 times a year.
“We are not just a buy and hold fixed income investor, which is what the rest of the world mainly does.”
He commended New Zealand investors for their affinity for fixed income with a typically high concentration of bonds in their portfolios.
“New Zealanders are frankly a little bit smarter, more sophisticated and more risk-averse.
“It’s a culture of direct, fixed income participation.”
Joye planned to be in Christchurch next month to publicly sign the Crusaders deal.
Colin Mansbridge, Crusaders CEO, said it wasthrilled to be partnering with Coolabah Capital for the next three years.
“It’s exciting to be aligned with such a fast-growing and innovative business.
“There will be some great opportunities to compare notes between high performance sport and business in order to generate learnings within the partnership.”
Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
