The Evolving Landscape of Fixed Income Investing
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.
The Case For Relative Value Remains Strong
It has been a challenging year for investors. Safe-haven assets, particularly longer dated government bonds, have suffered spectacular losses and while equity markets on average…
Corporate bonds unlimited?
Is central bank support for corporate bond markets truly unlimited? Our sense is decidedly not.
Vanishing yield cushions and the asymmetry of duration risk
It is widely assumed that government bonds are inherently ‘safe’ investments but this assumption is no longer so reliable.
Extreme volatility; where can investors take shelter?
In a market where every asset class seems to be at the mercy of volatility, investors are left wondering if there are any real safe havens anymore.
There’s more to fixed income than just buying bonds
This article outlines why a relative value approach is a compelling alternative to traditional fixed income investing.
Compensation for credit risk is poor
Following the sharp sell-off in Q4 2018, credit markets globally have performed strongly in 2019. Having seen a big dip, followed by a quick rebound, how are we now left?
Negative interest rates … the abnormal becomes ‘normal’
Hedonic adaptation is a psychology term that describes the human tendency of reverting to a relatively stable or ‘normal’ state following either positive or negative life changes.
Record inflows to bonds despite record low yields
Despite bond yields in many markets getting vanishingly low, inflows to bond funds globally have actually accelerated this year.
Low yields increase the equity beta of credit investments
With yield chasing capital flooding back into credit markets and pushing up bond prices, the behaviour of corporate bonds is changing.