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.
Yes inflation is low, but that’s already heavily priced in
Recent inflation readings in Australia and the US have reinforced the strong consensus view that inflation will remain very low for a long time.
Slow growth and low interest rates have become the consensus view
After fears of rising interest rates and bond market volatility rocked global markets last year, the consensus is now swinging back to the low economic growth / low interest rates narrative.
The central bank bar tab
A primary focus for global financial markets in Q4 2018 was the growing fear that the FED has tightened monetary policy too far, too fast and risks tipping the US economy into recession. This culminated in a severe global equity sell-off, which accelerated after the December FED meeting.
Credit is the Canary
Following last week’s meeting of the US Federal Reserve (FED), markets have become increasingly concerned that the FED is making a policy mistake in continuing to increase interest rates.
Messy end to ’18 returns focus to fundamentals
Recently in the AFR, Tamar Hamlyn discusses how the past weeks and months have seen financial markets approaching the year-end period with decidedly less lustre than investors might like.
Just a taste of the volatility to come
This Livewire exclusive discusses the global shift in central bank policy as a key driver of recent volatility and what to expect moving forward.
A virtuous circle to a vicious cycle in emerging markets
What does the yield on a 3 month US T Bill have to do with the price of a holiday in Argentina? Plenty, if you follow the chain of events that have driven capital flows since the 2008 financial crisis.
QE winners become QT losers
We’ve noted previously that the transition from Quantitative Easing (QE) to Quantitative Tightening (QT) is one of the two important paradigm shifts currently taking place in markets.
Is It Really That Simple?
It’s our view that there is a paradigm shift currently taking place.