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.
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 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.
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
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.
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.
Even if you have no exposure to fixed income, interest rates still matter … a lot.
The carrot that alternative investment strategies often dangle in front of investors is the prospect of uncorrelated returns.
Ardea discuss some key considerations for retiree portfolios and why actively managed fixed income is a compelling alternative that can complement traditional retirement income sources.