The vanishing yield cushion
The collapse in global bond yields has delivered large windfall capital gains however it has come at the cost of a vanishing yield cushion.
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?
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.
Central banks decide to keep the bar tab open
And it’s what’s driving the disconnect between bond and equity performance in 2019.
Record inflows to bonds despite record low yields
Despite bond yields in many markets getting vanishingly low, inflows to bond funds globally have actually accelerated this year.
The hidden equity beta in many fixed income funds
The managed fund research company Morningstar recently announced they are splitting their ‘intermediate term bond’ category into two new categories – ‘intermediate core bond’ and ‘intermediate core plus’ bond.
Bonds don’t always diversify equity risk
With global bond yields back near the low 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.
Low yields increase the equity beta of credit investments
With yield chasing capital flooding back into credit markets and pushing up bond prices, the behaviour of corporate bonds is changing.
Positive asset correlations and inflation assumptions
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
Nestegg podcast – Just how defensive is your portfolio really?
In this Nestegg podcast, Gopi Karunakaran speaks with host David Stratford about the current spotlight on the fixed income markets and the importance of a balanced portfolio.