Fixed income market inefficiency creates a vast and diverse range of mispricing opportunities that ‘relative value’ specialists can exploit.
Providing the ability to transact freely and liquidity plays a big role in how confident you can be about an investment’s valuation.
The collapse in global bond yields has delivered large windfall capital gains however it has come at the cost of a vanishing yield cushion.
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.
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?
Liquidity is one of those things that doesn’t get much focus until it’s too late.
Recent inflation readings in Australia and the US have reinforced the strong consensus view that inflation will remain very low for a long time.
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.
We discuss which chart we are watching closely and what it means to us and investors.
What does the yield on a 3 month US T Bill have to do with the price of a holiday in Argentina? Plenty, if you follow the chain of events that have driven capital flows since the 2008 financial crisis.