Interest rates matter … a lot
Even if you have no exposure to fixed income, interest rates still matter … a lot.
Market Insights
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.
Lies, Damned Lies and Correlations
The carrot that alternative investment strategies often dangle in front of investors is the prospect of uncorrelated returns.
Conventional fixed income is not doing its job
Conventional portfolio construction assumes that governments bonds will diversify equity risk. The theory is that when equities fall, bond yields decline, resulting in capital gains on bonds that help offset equity losses. The problem is that it’s not working that way in practice.
The early movers are leaving the credit party
During the early stages of the reach for yield process, credit market exposure was the wise choice. Now that we’re closer to the end, it’s more questionable.
Rethinking Fixed Income in Retirement
Ardea discuss some key considerations for retiree portfolios and why actively managed fixed income is a compelling alternative that can complement traditional retirement income sources.
Don’t assume bonds always diversify your equity risk
With global bond yields back near the high 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.
Volatility strategies are reliable risk diversifiers
The large and liquid universe of global interest rate options offers an impressive set of tools from which volatility strategies can be constructed. This article discusses how volatility strategies are reliable risk diversifiers.
Livewire Exclusive – Just how defensive is your portfolio really?
In this Livewire Exclusive video, Gopi Karunakaran urges investors to question just how defensive their portfolios really are.
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.