Since the early 2000’s the name ‘Mrs. Watanabe’ has been used to describe yield seeking Japanese retail investors, who were forced to increase their offshore investment risk taking in response to ultra-low interest rates back home.
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?
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.
Everyone has an opinion but does anyone really know?
The Hive is a video series featuring ActiveX fund managers. ActiveX’s Sam Morris and Ardea discuss the latest trends in fixed income and what investors should be considering.
In this Livewire Exclusive video, Ben Alexander discusses the importance of ‘relative value’ in fixed income markets.
The China economic slowdown story had been building behind the scenes long before markets decided to focus on trade hostilities with the US.
Recently in the AFR, Tamar Hamlyn discusses how the past weeks and months have seen financial markets approaching the year-end period with decidedly less lustre than investors might like.
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.
The large and liquid universe of global interest rate options offers an impressive set of tools from which volatility strategies can be constructed. This article discusses how volatility strategies are reliable risk diversifiers.