Credit is the Canary
Following last week’s meeting of the US Federal Reserve (FED), markets have become increasingly concerned that the FED is making a policy mistake in continuing to increase interest rates.
Market Insights
China risk goes beyond trade wars
The China economic slowdown story had been building behind the scenes long before markets decided to focus on trade hostilities with the US.
Commsec Executive Series
Tom Piotrowski speaks with Ardea IM’s Gopi Karunakaran regarding rising US interest rates, the outlook for Australian interest rates and the ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (XARO).
Messy end to ’18 returns focus to fundamentals
Recently in the AFR, Tamar Hamlyn discusses how the past weeks and months have seen financial markets approaching the year-end period with decidedly less lustre than investors might like.
Interest rates matter … a lot
Even if you have no exposure to fixed income, interest rates still matter … a lot.
Bounds on the cross currency basis and why they have lessened
The cross currency basis arises when pricing in the foreign exchange market diverges from what interest rate differentials would imply. This divergence creates a small additional return above the domestic interest rate.
Lies, Damned Lies and Correlations
The carrot that alternative investment strategies often dangle in front of investors is the prospect of uncorrelated returns.
Conventional fixed income is not doing its job
Conventional portfolio construction assumes that governments bonds will diversify equity risk. The theory is that when equities fall, bond yields decline, resulting in capital gains on bonds that help offset equity losses. The problem is that it’s not working that way in practice.
The early movers are leaving the credit party
During the early stages of the reach for yield process, credit market exposure was the wise choice. Now that we’re closer to the end, it’s more questionable.
Rethinking Fixed Income in retirement
Ardea IM discuss some key considerations for retiree portfolios and why actively managed fixed income is a compelling alternative that can complement traditional retirement income sources.