The vanishing yield cushion
Conventional approaches to fixed income investing rely on bond yields to generate returns. Most of the returns come from accumulating portfolios of bonds to harvest yield.
Market Insights
The push and pull on bond yields
2019’s rampant bond rally came to a halt this month as bond yields rose, causing bond prices to fall across most major bond markets.
The asymmetry of interest rate duration risk
A common way to think about bond yields is to view them as a cushion that protects bondholders from the potential negative effects of duration risk. As bond yields have now collapsed to very low levels, that protection from duration risk has vanished.
Your Wealth – Five key risks and how to avoid them
In this nabtrade podcast, Gopi Karunakaran discusses alternative types of fixed income and the key risks investors should be considering.
The bizarre world of negative interest rates
Some central banks are pushing monetary policy into the upside down world of negative interest rates, but rather than success they are creating bizarre side effects.
Mrs. Watanabe meets European insurance companies
Since the early 2000’s the name ‘Mrs. Watanabe’ has been used to describe yield seeking Japanese retail investors, who were forced to increase their offshore investment risk taking in response to ultra-low interest rates back home.
Safe havens and risky assets rallying at the same time
How is it that traditional safe haven assets like gold, government bonds and the Japanese yen are all performing strongly this year, just as risky assets like equities, credit and emerging markets are also doing very well?
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?
Hidden liquidity risk in fixed income portfolios
Liquidity is one of those things that doesn’t get much focus until it’s too late.
5 Key Risks Impacting Fixed Income for FY20
In this article, we will discuss five key risks to fixed income markets for FY20 and explain their relevance to those allocating to fixed income investments.