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?
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
Gopi Karunakaran introduces the ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (ASX:XARO).
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.
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.
Even if you have no exposure to fixed income, interest rates still matter … a lot.
The cross currency basis arises when pricing in the foreign exchange market diverges from what interest rate differentials would imply. This divergence creates a small additional return above the domestic interest rate.
The carrot that alternative investment strategies often dangle in front of investors is the prospect of uncorrelated returns.