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.
Finance text books, reams of academic research and practitioner experience all point to the existence of a “volatility risk premium” (VRP), which is a foundational principal of option selling strategies.
Gopi Karunakaran introduces the ActiveX Ardea Real Outcome Bond Fund (Managed Fund) (ASX:XARO).
One way to profit from interest rate volatility is to get directional calls right, ahead of a large move in rates. Sadly, we have yet to come across anyone who has been able to consistently get these directional calls right.
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.
Watch Ardea Portfolio Manager Gopi Karunakaran and Fidante Investment Specialist Sam Morris as they discuss the ActiveX Ardea Real Outcome Bond Fund (Managed Fund).
It’s that time of year when inboxes get flooded with 2019 economic and financial market forecasts. As the CFA institute points out, at the beginning of 2018 the median analyst forecast for the S&P 500 calendar year return was +10.3%. The actual result ended up being -6.2%.
In a theoretically efficient fixed income market, closely related bonds (or derivatives) with similar risk characteristics would always be priced the same. In reality, these prices persistently diverge from each other, which means fixed income markets are inefficient.
Watch this Livewire video to learn more about the Real Outcome Fund and the team’s investment process.
Following the budget announcement, we discuss why the current environment places Ardea well to continue to identify and exploit inefficiencies in fixed income markets to generate positive investment outcomes for our investors.