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.
Bonds don’t always diversify equity risk
With global bond yields back near the low end of recent ranges, it’s an opportune time to revisit a theme that’s relevant to portfolio construction today – the bond vs. equity correlation.
Yield curve inversion
Everyone has an opinion but does anyone really know?
Positive asset correlations and inflation assumptions
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
Introducing XARO
Gopi Karunakaran introduces the ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (ASX:XARO).
China risk goes beyond trade wars
The China economic slowdown story had been building behind the scenes long before markets decided to focus on trade hostilities with the US.
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.
Interest rates matter … a lot
Even if you have no exposure to fixed income, interest rates still matter … a lot.
Bounds on the cross currency basis and why they have lessened
The cross currency basis arises when pricing in the foreign exchange market diverges from what interest rate differentials would imply. This divergence creates a small additional return above the domestic interest rate.