How quickly can you boil a frog? – The case for hedging inflation risk volatility
Recent events have pushed both inflation expectations and bond yields to long-term lows, so should investors still worry about inflation?
Market Insights
Australia’s Sovereign Rating: Is it an Issue?
Moody’s has recently commented that Australia’s “AAA” sovereign rating could be under pressure, notwithstanding the current stable outlook.
Challenges and opportunities – the year ahead 2016
With the festivities behind us and a new year ahead it is a good time to reflect on what to expect from fixed interest markets. More of the same, or will the end of zero interest rates in the US bring something different?
Return Expectations for Active Fixed Income
Bond yields across the major fixed income markets are currently at low levels relative to history, causing investors to question whether the asset class can continue to deliver an attractive return.
When volatility is low but uncertainty is high … buy interest rate options
Thinking uncertainly vs thinking volatility. These two market views are creating something of a conundrum in interest rate markets at the moment.
Macroprudential measures announced in Australia
APRA yesterday announced a series of new measures aimed at reinforcing sound lending practices by financial institutions in Australia.
Macroprudential tools in Australia
In recent months macroprudential measures have increasingly been under discussion in Australia. The Reserve Bank of Australia and other regulators now appear open to the adoption of such tools.
New Zealand Inflation Indexed Bonds
Increasing issuance of inflation linked bonds in New Zealand has resulted in a NZD 14 billion market, accounting for close to 20% of the NZ government bond market. NZ ILBs offer an attractive real yield and a low entry point for breakeven inflation.
Preparing for volatility: protection strategies for fixed income portfolios
Over the first half of 2014 financial markets experienced a significant decline in bond yields, with a correspondingly strong period of performance.
Rising inflation and a neutral RBA: what does it mean for fixed income portfolios?
Following recent upside surprises in inflation, and the move to a neutral stance by the Reserve Bank of Australia (RBA), we highlight the likely implications for returns on nominal and inflation protected fixed income portfolios.