Recent inflation readings in Australia and the US have reinforced the strong consensus view that inflation will remain very low for a long time.
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.
The managed fund research company Morningstar recently announced they are splitting their ‘intermediate term bond’ category into two new categories – ‘intermediate core bond’ and ‘intermediate core plus’ bond.
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.
With yield chasing capital flooding back into credit markets and pushing up bond prices, the behaviour of corporate bonds is changing.
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.
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.
After fears of rising interest rates and bond market volatility rocked global markets last year, the consensus is now swinging back to the low economic growth / low interest rates narrative.
Watch Ardea Portfolio Manager Gopi Karunakaran and Fidante Investment Specialist Sam Morris as they discuss the ActiveX Ardea Real Outcome Bond Fund (Managed Fund).