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In an era of financial uncertainty and market fluctuations, Australian investors are seeking safer, more resilient income-producing assets. One standout opportunity capturing attention is the fixed income bonds issued by Berkshire Hathaway Energy Company. With Australia’s term deposit rates still under pressure and ASX dividend yields increasingly volatile, global-grade utility sector bonds are emerging as a compelling alternative.
ARC Capital Ventures has seen a significant uptick in inquiries and allocations toward global utilities—particularly Berkshire Hathaway Energy (BHE)—over the past 12 months.
Berkshire Hathaway Energy: Strength in Stability
Founded in 1999 and a subsidiary of Warren Buffett’s Berkshire Hathaway Inc., BHE is a diversified energy company with operations across the U.S., U.K., and Canada. Known for its conservative balance sheet and consistent cash flows, BHE boasts an A+ credit rating (S&P) and a track record of delivering long-term, stable returns.
“What attracts sophisticated investors to BHE isn’t just the name recognition,” says ARC Capital Venture CEO, Marios Anastasiou. “It’s the underlying fundamentals: low leverage, predictable cash flows, and a defensive sector that performs well across economic cycles.”
Bond Snapshot: Fixed Yields, High Ratings
ARC Capital’s analyst team highlights the latest BHE bond series offering a fixed coupon rate of 5.90% p.a. over a 7-year maturity horizon. These are senior unsecured notes issued in USD and available to Australian wholesale investors via ARC’s fixed income desk. The bonds are structured for semi-annual interest payments and provide access to a high-grade credit profile without equity market volatility.
“Investors get the best of both worlds: fixed returns and the backing of a global infrastructure powerhouse,” Anastasiou explains.
Why Utility Bonds Are In Demand
Utilities like BHE are considered ‘defensive’ plays in investment portfolios due to the essential nature of their services—electricity, gas, and renewables. These sectors exhibit low cyclicality, which means they continue to generate revenue even during recessions or downturns.
According to ARC’s research, over the last 10 years, utility bonds globally have shown a default rate of just 0.1%, significantly lower than corporate averages. This makes them particularly attractive for investors prioritizing capital preservation and consistent income.
Yield Comparison: Bonds vs. ASX Stocks and Term Deposits
Let’s compare apples to apples.
ARC Capital’s fixed income report for Q2 2025 shows that bonds like those from BHE offer a 1.3% to 1.7% premium over traditional fixed deposits, with significantly less volatility than dividend stocks.
“Equity-linked investments are still important for growth,” notes Anastasiou. “But for Australians in or near retirement—or those simply seeking predictable income—the bond market presents unmatched clarity and structure.”
Who’s Investing in Utility Bonds?
Based on ARC Capital’s investor segmentation:
One ARC client, a 58-year-old Sydney-based SMSF holder, reallocated $250,000 from blue-chip bank shares into global utility bonds, citing the “need for certainty in income planning” as his key motivator.
The ARC Advantage: Access and Advisory
BHE bonds are not readily available through retail banking channels. ARC Capital Venture provides access through its wholesale bond desk, combining direct allocation opportunities with tailored income strategies.
“We don’t just sell bonds—we structure portfolios around them,” says Anastasiou. “For clients, it’s not about chasing the highest return. It’s about balancing income, risk, and duration to meet life’s financial goals.”
ARC Capital’s Fixed Income Guide outlines how bonds like BHE’s are integrated alongside corporate notes, government bonds, and ESG products to create a diversified income-generating portfolio.
Final Thoughts
As fixed income continues its resurgence in a post-rate-hike world, high-quality global issuers like Berkshire Hathaway Energy are gaining traction among Australian investors looking for durable income streams.
If you're a sophisticated investor or SMSF trustee weighing income options in a volatile environment, Berkshire Hathaway Energy’s fixed-rate bonds offer a compelling case. They blend strong credit quality, above-average yields, and institutional-grade access—all underpinned by one of the most stable sectors in global finance.
To explore ARC Capital’s current utility-sector bond offerings, request our Fixed Income Investment Guide or speak with our licensed advisory team.