Market inefficiency is a growing opportunity in fixed income
Fixed income market inefficiency creates a vast and diverse range of mispricing opportunities that ‘relative value’ specialists can exploit.
Investment Grade Credit Relative Value
Investment grade (IG) credit has been one of the worst performing asset classes so far this year, and its largest segment – USD IG credit – has been the worst hit.
One Measure of Fixed Income Risk is at GFC Levels – Should Investors be Worried?
Tamar Hamlyn discusses the current environment of tightening global liquidity and increasing government bond supply, which is having a knock-on effect on domestic liquidity.
Corporate Bonds – More Risk for Less Return
Credit spreads over government bonds should compensate investors not just for default risk but also for other risks such as illiquidity. Gopi Karunakaran discusses how corporate bond markets are currently not providing sufficient compensation for growing illiquidity risk.
Livewire Exclusive – A dangerous consensus
In a Livewire Exclusive video, Gopi Karunakaran discusses how banks withdrew from corporate bond markets after the financial crisis, and what this means for the US$560 billion in fixed income ETFs around the world.
Australia’s Sovereign Rating: Is it an Issue?
Moody’s has recently commented that Australia’s “AAA” sovereign rating could be under pressure, notwithstanding the current stable outlook.
Macroprudential measures announced in Australia
APRA yesterday announced a series of new measures aimed at reinforcing sound lending practices by financial institutions in Australia.
Macroprudential tools in Australia
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.