We explain the mechanics of inflation protection and how to identify relative value opportunities.
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
We’ve noted previously that the transition from Quantitative Easing (QE) to Quantitative Tightening (QT) is one of the two important paradigm shifts currently taking place in markets.
Inflationary pressures have been building globally and particularly in the US. The rise in breakeven inflation rates over the past two months shows that markets have begun to price this in.
Tamar Hamlyn discusses recent comments from incoming RBA Governor Philip Lowe on 8 September 2016 on research conducted within the RBA and other monetary policy bodies.
Recent events have pushed both inflation expectations and bond yields to long-term lows, so should investors still worry about inflation?
Following recent upside surprises in inflation, and the move to a neutral stance by the Reserve Bank of Australia (RBA), we highlight the likely implications for returns on nominal and inflation protected fixed income portfolios.