The perception and the reality of portfolio diversification can turn out very different in adverse market environments.
Government bond markets are now at the precipice of a paradigm shift.
In a market where every asset class seems to be at the mercy of volatility, investors are left wondering if there are any real safe havens anymore.
For several decades now, the correlation between asset prices has generally been increasing.
If used improperly, statistics and the graphical representation of those statistics can be misleading.
How can a negative yield bond deliver a positive return, or a positive yield bond deliver a loss?
The ‘repo market’ – has received an unusual amount of attention since the latter part of 2019.
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 IM discuss the latest trends in fixed income and what investors should be considering.