Why Coolabah Capital's Christopher Joye thinks the "mother of all default cycles" has started

For the first time in 15 years, bonds are back in vogue and their income-paying qualities are well and truly in the spotlight. For government bonds, yields have had a long climb from the basement to where they are today (3.6% for an Australian 10-year bond). In the corporate space, some bank bonds are finally yielding more than their share prices.

But, as with anything, no two fixed-income instruments are alike. You only need to look at the Credit Suisse collapse for an example of that. In one weekend, AT1 bondholders, who thought they would be ranked above shareholders in the pecking order, instead found themselves wiped out.

Stories like this help explain why Coolabah Capital co-founder and CIO Christopher Joye is so adamant about remaining a nimble investor in this environment. As part of the Coolabah Active Composite Bond Strategy, Joye and his team trade anywhere between 50 to 100 times per day in the Australian high-grade credit market.

In this, the last interview of Livewire's inaugural Undiscovered Funds Series, Joye sits down to discuss the opportunities and pitfalls in today's fixed income landscape.

He also shares some thoughts on the property market, the risk of a corporate default cycle, and the themes he thinks investors are underpricing right now.