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.
2019 has so far been a stellar year for bond returns globally. Even a simple passive exposure to long dated bonds has delivered handsome profits that far exceed the average yield of those bonds.
Despite bond yields in many markets getting vanishingly low, inflows to bond funds globally have actually accelerated this year.
Last week bond yields globally dropped to the low end of recent ranges and reached new record low levels in Australia, Ardea discuss what investors should think about.
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.
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.