Does duration still diversify equity risk?
Ardea IM uses statistical modelling in order to discuss whether government bonds still diversify equity risk.
Insights
Podcast: Model Uncertainty and Risk Models
In our first episode of the Ardea IM Quantitative Research Series, Ben Alexander, Co-Chief Investment Officer at Ardea Investment Management joins Dr. Laura Ryan as they share insights into the risk model used in the Ardea IM portfolio construction process.
Will Japanification Eliminate Relative Value Trading Opportunities in Rates Markets?
Record low rates are leading some market participants to question whether all bond markets are experiencing “Japanification”. Will this backdrop spell the end to relative value trading opportunities?
The changing role of duration in an ultra-low yield world
Ultra-low yields fundamentally change the risk vs. reward proposition of government bonds.
Long term bonds – relative value and risk in a low yield world
Australia extends its yield curve to 2051. The issue received record interest from global investors and highlights the importance of yield curve shape and global relative value dynamics for investors.
Corporate bonds unlimited?
Is central bank support for corporate bond markets truly unlimited? Our sense is decidedly not.
Diversification lessons from the March quarter
The perception and the reality of portfolio diversification can turn out very different in adverse market environments.
Inflation Linked Bonds 101
We explain the mechanics of inflation protection and how to identify relative value opportunities.
Vanishing yield cushions and the asymmetry of duration risk
It is widely assumed that government bonds are inherently ‘safe’ investments but this assumption is no longer so reliable.
Liquidity lessons from March
Liquidity often gets little attention until something goes wrong … and in March 2020 things certainly went wrong.