Franking credits hindering corporate bond market: AMPBY JAMES FERNYHOUGH | FRIDAY, 6 DEC 2013 12:40PMThe franking credit system is hindering the development of a vibrant corporate bond market in Australia, according to AMP Capital's head of credit markets Jeff Brunton. Related News |
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No, that's not right. The franking credit system in aggregate has been largely beneficial. It's too myopic for a bond person to say that franking credits are detrimental to the bond market. The truth is, forward looking returns for bonds and cash are low. Equities have run, and retail investors are following the returns (albeit, probably too late)