A: I am a fan (and investor) of the NB Corporate Income Trust (NBI). I classify it within the “risky fixed interest” portion of my portfolio. It is not my only investment in this area – diversifying manager risk, as well as the risk of the underlying asset class (non-investment grade corporate bonds) are key considerations. It is currently paying a distribution of 5.25% pa, although this will drop in FY21 to the mid to high ‘4’s.

They are conducting a 3 for 4 entitlement offer at $2.05 per unit to raise about $500m. Last NTA is $2.06. The offer closes on 21 February. As always, review the Product Disclosure Statement closely before making any decision to invest.