Japan’s 40-year government bond auction on 28 May 2025 recorded its weakest demand since July last year, with a bid-to-cover ratio of just 2.21. The soft result pushed the 40-year yield up to 3.375%, driving a significant steepening of the super-long end of the curve and highlighting the growing risk premia investors now require to […]
Recent months have seen heightened volatility across financial markets, with riskier assets such as equities and corporate bonds bearing the brunt of the associated uncertainty. In times like these, investors increasingly turn to products that offer both diversification and downside protection. Ardea Investment Management’s Fixed Income Relative Value strategy is specifically designed to perform independently […]
On 20 May 2025, the Dutch Parliament narrowly rejected a proposal (73–72) that would have allowed individuals to vote on opting out of the country’s transition from Defined Benefit (DB) to Defined Contribution (DC) pensions. The proposal, backed by opposition parties, was not intended to stop the reform but to give individuals more choice. The […]
Ardea IM explore how relative value can add diversification to core investment grade credit portfolios by adding to relative value with uncorrelated returns and effective portfolio diversification.
Dr Laura Ryan’s research challenges the traditional reliance on correlation for diversification, emphasising that relative volatility and volatility predictability are more critical metrics for effective risk reduction.
Named after Janus, the Roman god often depicted with two faces (one that looks to the past and one to the future), January is the month of new beginnings. The month we put lessons from the past year into action and the month we navigate the economic predictions for the year ahead.
With Trump trades flooding the equity market in the run up to the US elections; a sell-off in the treasury markets since then; and Bitcoin hitting an all-time high this month, it is fair to say, that for some investors at least, the last few months have been a bare-knuckle roller-coaster ride. In a quest […]
A common theme in 2024 has been ongoing demand for corporate bonds. As to be expected, institutional investors have favoured higher quality investment grade bonds, but demand for sub-investment grade (high yield) and private credit has also been strong.
A common theme in 2024 has been ongoing demand for corporate bonds. As to be expected, institutional investors have favoured higher quality investment grade bonds, but demand for sub-investment grade (high yield) and private credit has also been strong. Perhaps this should be of no surprise. Interest rates have peaked in the developed world and […]
Financial markets are at an interesting juncture, with equity indices at an all-time high and forecast central bank cuts promising relief to wary fixed income investors. Inflationary pressures are moderating, and fears of a major economic downturn seem to have evaporated. For many, the much-desired Goldilocks scenario appears to be playing out. However, every major […]
