This article has been submitted by Income Asset Management
In consideration of further rate increases from the RBA, fixed income markets are largely ‘pricing in’ the current rate hike cycle. Whether the market is right or not is another matter and often hard to predict. The market will form a path on...
With surging inflation amid record-low unemployment over the past 18 months, discussions about “secular stagnation” have receded into the background.
However, today’s high inflation stems from severe supply-side shocks (war, sanctions) and interruptions to supply chains (due to the pandemic), coupled with large but temporary increases in spending (fiscal stimulus,...
Central banks are signalling higher rates and while the market already prices in expected rate rises, investors are unsure when rate hikes will stop. Preference is being given to floating rate securities.
This article compares three floating rate ETFs.
Each of the three ETFs offers exposure to floating rate bonds, where...
Mutual Limited CIO Scott Rundell has provided some commentary following the US CPI data figures released overnight:
Overview: well, that was fun
Markets have reacted violently to what I would consider to be a modest miss in US CPI. Stocks and bonds were smoked, taken to the principal’s office...
US inflation came in higher than expected overnight, with prices climbing 8.3% compared to a year ago. The acceleration points to a stubbornly high cost of living for Americans and increases the likelihood of another 75 basis points rise to the US Federal Funds rate. In this piece, Seema...
This article was part of an Ardea Investment Management paper title ‘Five Key Questions on Duration’, published on 25 July 2022. It helps investors assess whether bond yields provide adequate returns and uses 10-year government bond yield as an example.
The fixed income market is currently facing somewhat binary tail...
From Income Asset Management
While yields have improved in the Australian BBB space, it’s also nice for investors to know their money is relatively safe.
S&P release a report every year looking at default rates per credit ratings over time. The 2022 report will be released in 2023 but the most...
The Australian regulatory regime is not geared toward the growth of a vibrant retail bond market. This is an issue market participants have grappled with for many years. Despite well-intended amendments to the regime over the past decade, it remains disjointed, unreasonably complex and expensive for widespread retail bond...
From Amundi Asset Management
Investors expect central banks will tame inflation whatever the cost, even triggering recession if necessary. This may indeed be policymakers’ approach in the short term as they seek to re-establish their credibility. The European Central Bank’s decision to raise rates by 50 bps is a case...
