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.
The carrot that alternative investment strategies often dangle in front of investors is the prospect of uncorrelated returns.
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.
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.
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.
The large and liquid universe of global interest rate options offers an impressive set of tools from which volatility strategies can be constructed. This article discusses how volatility strategies are reliable risk diversifiers.
In this Livewire Exclusive video, Gopi Karunakaran urges investors to question just how defensive their portfolios really are.
This Livewire exclusive discusses the global shift in central bank policy as a key driver of recent volatility and what to expect moving forward.
We discuss which chart we are watching closely and what it means to us and investors.
We’re normally circumspect about the “EM contagion” narrative as it usually ends up being more headline noise than substance, but this time we’re paying closer attention
