Market Insights

Tamar Hamlyn discusses inflation with Livewire and if this is about to change.

Following the budget announcement, we discuss why the current environment places Ardea well to continue to identify and exploit inefficiencies in fixed income markets to generate positive investment outcomes for our investors.

Tamar Hamlyn discusses the current environment of tightening global liquidity and increasing government bond supply, which is having a knock-on effect on domestic liquidity.

Credit spreads over government bonds should compensate investors not just for default risk but also for other risks such as illiquidity. Gopi Karunakaran discusses how corporate bond markets are currently not providing sufficient compensation for growing illiquidity risk.

In a Livewire Exclusive video, Gopi Karunakaran discusses how investors make good decisions when uncertain about the future.

This time last year Tamar Hamlyn shared with Livewire that inflation and volatility charts were the ones he was watching closely. Tamar now shares his thoughts of what to expect from here and what investors can do about it.

In a Livewire Exclusive video, Gopi Karunakaran discusses how banks withdrew from corporate bond markets after the financial crisis, and what this means for the US$560 billion in fixed income ETFs around the world.

Gopi Karunakaran shared his thoughts at the Portfolio Construction Forum Markets Summit 2018. Gopi’s presentation is available to watch or download.

In a Livewire Exclusive video, Gopi Karunakaran discusses why there could be a significant sell off in bond yields in 2018.

Gopi Karunakaran shares his thoughts on the global fall in interest rates over the past 10 years and what to expect when this tailwind to asset prices subsides.

We discuss the surge in performance of UK inflation linked bonds and the benefit to Australian investors.

Two charts we are watching closely and what they mean to us and investors.

Tamar Hamlyn shares his observations of global macroeconomic policy following a study tour across the US, EU, UK, China and Japan.

Our view on the volatility since the Election result, however overall these events are favourable for markets and good for investors.

Tamar Hamlyn discusses recent comments from incoming RBA Governor Philip Lowe on 8 September 2016 on research conducted within the RBA and other monetary policy bodies.

Whilst current inflation is low, so are the returns on many low risk assets. This means inflation can still absorb a large part of returns and historically, this can be quite unpredictable.

Recent events have pushed both inflation expectations and bond yields to long-term lows, so should investors still worry about inflation?

Moody's has recently commented that Australia's "AAA" sovereign rating could be under pressure, notwithstanding the current stable outlook.

Bond yields across the major fixed income markets are currently at low levels relative to history, causing investors to question whether the asset class can continue to deliver an attractive return.

With the festivities behind us and a new year ahead it is a good time to reflect on what to expect from fixed interest markets. More of the same, or will the end of zero interest rates in the US bring something different?

Thinking uncertainly vs thinking volatility. These two market views are creating something of a conundrum in interest rate markets at the moment.

Fixed Income Management at Ardea - Using Derivatives to Protect Portfolios and Capture Opportunities

APRA yesterday announced a series of new measures aimed at reinforcing sound lending practices by financial institutions in Australia.

In recent months macroprudential measures have increasingly been under discussion in Australia. The Reserve Bank of Australia and other regulators now appear open to the adoption of such tools.

Increasing issuance of inflation linked bonds in New Zealand has resulted in a NZD 14 billion market, accounting for close to 20% of the NZ government bond market. NZ ILBs offer an attractive real yield and a low entry point for breakeven inflation.

Over the first half of 2014 financial markets experienced a significant decline in bond yields, with a correspondingly strong period of performance.

Following recent upside surprises in inflation, and the move to a neutral stance by the Reserve Bank of Australia (RBA), we highlight the likely implications for returns on nominal and inflation protected fixed income portfolios.

The Australian Office of Financial Management announced the launch of a new inflation linked bond with a real coupon of 2.0% and a maturity of 21 August 2035.

As one of the oldest asset classes around, fixed income has long played a cornerstone role in diversified portfolios. Generally, the safest bonds available in Australia are issued by the Commonwealth and State governments...

Ardea Investment Management is the investment manager of a new fund, the Ardea Wholesale Inflation Plus Fund, for investors seeking a stable, defensive return over and above inflation.

The Australian Office of Financial Management (AOFM) has issued a new inflation-linked bond in February 2012. The bond is a new benchmark line with a maturity date of February 2022. The tender occurred via syndication with a deal size of $A900 million.

The last couple of months have been all about the credibility of the US and European currencies being undermined by various unfortunate events. Investors have been struggling with a very odd challenge, namely finding alternative stores of value ...

It is no surprise that inflation-linked bonds have outperformed recently. Inflation has become a recurrent theme in current global economic discourse, particularly in the wake of 'QE2' in the US and rising food and energy prices.

Why are real yields negative in the US, and do they offer good value as an investment at current levels?

The Consumer Price Index for the second quarter of 2010 came in at 0.6% growth over the quarter.

Australian ILBs recorded solid gains during the quarter, outperforming nominal bonds, bank bills and the global ILB market.

The Australian Office of Financial Management recently provided further detail on intended Commonwealth issuance over the remainder of the Financial Year.

The AOFM issued a new $4bn 2025 inflation linked bond, the first since 2003.

The AOFM announcement confirms the issuance of a new capital indexed bond with a maturity date of 20 September 2025.

The announcement that the AOFM would reopen the ILB market with the re-issuance of a new benchmark line, represents a significant increase in the supply of sovereign ILBs.

Inflation linked bonds represent a unique combination of inflation protection and outperformance during downturns.

While the current state of the global economy provides the environment for lower inflation, recent fiscal and monetary policy activities will lead to higher inflation in the future.

The dramatic fall in Australian inflation driven by asset allocation away from ILBs, continuing supply, falling demand for inflation protection and slow down in speculative buying