Research & education

The research & education centre provides a range of articles and background information relating to fixed income investment management as well as a glossary of relevant terms.

Ardea reports

Linkers surge on UK inflation shock: a British history lesson | Download (223.80k PDF)

Ardea discuss the surge in returns on UK inflation linked bonds.

It's time to MOVE | 17/03/2017 Download (267.44k PDF)

Two charts we are watching closely and what they mean to us and investors.

The single most important chart we are watching | 14/03/2017 Download (260.32k PDF)

Livewire reached out to Tamar Hamlyn to ask three questions: What is the single most important chart you are watching, what is it currently telling us, and what are the implications for investors?

Global Fixed Income markets: a fragile balance | 21/11/2016 Download (511.23k PDF)

Tamar Hamlyn shares his observations of global macroeconomic policy following a study tour across the US, EU, UK, China and Japan.

Flash Note - Trump Election... The impact so far | 10/11/2016 Download (174.65k PDF)

While volatility has been significant since the Election result, we think overall these events are favourable for markets and good for investors.

Flash Note - Developments in Inflation Expectations | 21/10/2016 Download (230.89k PDF)

Both UK and US central bank comments reveal thinking on policy responses to future rises in inflation

Flash Note - Incoming RBA Governor Philip Lowe's 8 September 2016 speech | Download (164.90k PDF)

Tamar Hamlyn discusses recent comments from incoming RBA Governor Philip Lowe on 8 September 2016 on research conducted within the RBA and other monetary policy bodies.

Part 2 - How Quickly Can you Boil a Frog? - Why we should still think about inflation | Download (325.28k PDF)

Whilst current inflation is low, so are the returns on many low risk assets. This means inflation can still absorb a large part of returns and historically, this can be quite unpredictable.

How quickly can you boil a frog? - The case for hedging inflation risk volatility | 31/05/2016 Download (605.60k PDF)

Recent events have pushed both inflation expectations and bond yields to long-term lows, so should investors still worry about inflation?

Australia's Sovereign Rating: Is it an Issue? | 31/05/2016 Download (427.33k PDF)

Moody's has recently commented that Australia's "AAA" sovereign rating could be under pressure, notwithstanding the current stable outlook.

Return Expectations for Active Fixed Income | 1/02/2016 Download (341.67k PDF)

Bond yields across the major fixed income markets are currently at low levels relative to history, causing investors to question whether the asset class can continue to deliver an attractive return.

Challenges and opportunities - the year ahead 2016 | 1/01/2016 Download (52.97k PDF)

With the festivities behind us and a new year ahead it is a good time to reflect on what to expect from fixed interest markets. More of the same, or will the end of zero interest rates in the US bring something different?

When volatility is low but uncertainty is high ... buy interest rate options. | 1/04/2015 Download (97.63k PDF)

Thinking uncertainly vs thinking volatility. These two market views are creating something of a conundrum in interest rate markets at the moment.

Ardea Strategy Paper | 1/01/2015 Download (9196.83k PDF)

Fixed Income Management at Ardea - Using Derivatives to Protect Portfolios and Capture Opportunities

Macroprudential measures announced in Australia | 10/12/2014 Download (51.53k PDF)

APRA yesterday announced a series of new measures aimed at reinforcing sound lending practices by financial institutions in Australia.

Macroprudential preview | 1/12/2014 Download (85.93k PDF)

In recent months macroprudential measures have increasingly been under discussion in Australia. The Reserve Bank of Australia and other regulators now appear open to the adoption of such tools.

New Zealand Inflation Indexed Bonds | 10/11/2014 Download (159.04k PDF)

Increasing issuance of inflation linked bonds in New Zealand has resulted in a NZD 14 billion market, accounting for close to 20% of the NZ government bond market. NZ ILBs offer an attractive real yield and a low entry point for breakeven inflation.

Preparing for volatility | 25/08/2014 Download (155.36k PDF)

Over the first half of 2014 financial markets experienced a significant decline in bond yields, with a correspondingly strong period of performance.

Rising inflation and a neutral RBA | 10/02/2014 Download (56.87k PDF)

Following recent upside surprises in inflation, and the move to a neutral stance by the Reserve Bank of Australia (RBA), we highlight the likely implications for returns on nominal and inflation protected fixed income portfolios.

New Commonwealth 2035 Inflation Linked Bond | 27/09/2013 Download (55.65k PDF)

The Australian Office of Financial Management announced the launch of a new inflation linked bond with a real coupon of 2.0% and a maturity of 21 August 2035.

Does your bond allocation have an unintended bias? | 12/12/2012 Download (98.57k PDF)

As one of the oldest asset classes around, fixed income has long played a cornerstone role in diversified portfolios. Generally, the safest bonds available in Australia are issued by the Commonwealth and State governments...

Press Release - Ardea Inflation Plus Fund | 21/08/2012 Download (186.18k PDF)

Ardea Investment Management is the investment manager of a new fund, the Ardea Wholesale Inflation Plus Fund, for investors seeking a stable, defensive return over and above inflation.

New inflation-linked bond issued | 21/02/2012 Download (496.66k PDF)

The Australian Office of Financial Management (AOFM) has issued a new inflation-linked bond in February 2012. The bond is a new benchmark line with a maturity date of February 2022. The tender occurred via syndication with a deal size of $A900 million.

An inflationary crisis? | 24/08/2011 Download (856.88k PDF)

The last couple of months have been all about the credibility of the US and European currencies being undermined by various unfortunate events. Investors have been struggling with a very odd challenge, namely finding alternative stores of value ...

Inflation-linked bonds: are they expensive? | 17/06/2011 Download (506.26k PDF)

It is no surprise that inflation-linked bonds have outperformed recently. Inflation has become a recurrent theme in current global economic discourse, particularly in the wake of 'QE2' in the US and rising food and energy prices.

Negative real yields on inflation linked bonds | 5/11/2010 Download (498.34k PDF)

Why are real yields negative in the US, and do they offer good value as an investment at current levels?

One soft reading or the Goldilocks economy? | Download (158.85k PDF)

The Consumer Price Index for the second quarter of 2010 came in at 0.6% growth over the quarter.

ILB Market Update - March 2010 | Download (193.30k PDF)

Australian ILBs recorded solid gains during the quarter, outperforming nominal bonds, bank bills and the global ILB market.

Inflation Linked Bonds (ILBs) - issuance for Financial Year 2010 | 9/11/2009 Download (133.34k PDF)

The Australian Office of Financial Management recently provided further detail on intended Commonwealth issuance over the remainder of the Financial Year.

New issuance in inflation linked bonds - $4bn 2025 Commonwealth issue | 1/10/2009 Download (67.11k PDF)

The AOFM issued a new $4bn 2025 inflation linked bond, the first since 2003.

New issuance in inflation linked bonds - additional information | 4/09/2009 Download (25.61k PDF)

The AOFM announcement confirms the issuance of a new capital indexed bond with a maturity date of 20 September 2025.

New Issuance in Inflation Linked Bonds (ILBs) - effects of supply | 17/08/2009 Download (43.96k PDF)

The announcement that the AOFM would reopen the ILB market with the re-issuance of a new benchmark line, represents a significant increase in the supply of sovereign ILBs.

Investing in inflation linked bonds - the whys and hows | 18/05/2009 Download (83.12k PDF)

Inflation linked bonds represent a unique combination of inflation protection and outperformance during downturns.

Inflation linked bonds outlook | 31/03/2009 Download (322.74k PDF)

While the current state of the global economy provides the environment for lower inflation, recent fiscal and monetary policy activities will lead to higher inflation in the future.

Inflation Linked Bonds and Outlook | 30/06/2008 Download (509.65k PDF)

The dramatic fall in Australian inflation driven by asset allocation away from ILBs, continuing supply, falling demand for inflation protection and slow down in speculative buying

More Ardea reports