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...
By Robert Tipp, Chief Investment Strategist and Head of Global Bonds at PGIM Fixed Income
Summary
Most developed market (DM) bond markets have already priced in substantial interest rate increases
Bank of Japan sees inflation trend as an opportunity
Chinese bond market bucks bear market trend
Will we see a...
If you are thinking about investing direct, then there are a number of factors you’ll need to assess.
While many of the metrics will be similar to shares, they are some important differences. For example, growth is a crucial assessment when investing in shares. However, bondholders do not care if...
By Steven Spearing – portfolio manager Apostle funds management.
Why incorporating floating rate securities as part of a fixed income portfolio can help investors manage interest rate risk and improve capital stability.
Central banks around the world have been raising interest rates in 2022 to bring high levels of inflation under...
This market review comes from Jamieson Coote Bonds
The recent US Federal Reserve (US Fed) meeting has elicited discussion about a possible US Fed 'pivot' in interest rate policy and how that might support asset markets. Given global financial markets take their lead from the US, it is worth considering...
Late July news of the Federal Reserve (Fed) increasing interest rates another 0.75% and a second negative quarter of economic growth (GDP) has created an uncertain environment for investors going forward. Adding to these concerns is China’s economic slowdown and Europe’s energy shock.
Stephen Dover, Chief Market Strategist, at the...
By Michael Della Vedova, global high yield portfolio manager at T. Rowe Price
Volatility has propelled high yield bond spreads to their highest levels since November 2020, but we believe the asset class’s fundamentals remain solid, however, and that current valuations do not reflect its underlying strength. If we are...
