Mrs. Watanabe meets European insurance companies

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.

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Strange behaviour in option markets

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.

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How to profit from interest rate volatility

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.

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Rethinking Fixed Income in retirement

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.

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