Ultra-low yields fundamentally change the risk vs. reward proposition of government bonds.
Despite bond yields in many markets getting vanishingly low, inflows to bond funds globally have actually accelerated this year.
Distortions in short-term money markets are giving rise to attractive, low-risk investment opportunities for fixed income managers.
APRA yesterday announced a series of new measures aimed at reinforcing sound lending practices by financial institutions in Australia.
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.