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Last week I was fortunate enough to interview Fraser Lundie, Head of Fixed Income – Public Markets at Federated Hermes who was visiting Australia from the UK. He gave great insight to the global bond market, as well as expressing some contrarian views. How do you see the Australian Fixed...

Market sentiment has taken a decidedly negative turn as growth concerns stemming from the Federal Reserve’s monetary tightening percolate, according to Seema Shah, Chief Strategist at Principal Global Investors. Commenting on the recent market sell-off, Shah said the S&P 500 has recorded six consecutive weekly declines for the first time...

T.Rowe Price argue investors need to look beyond the ‘green’ label for companies making ESG advances as vanilla, non‑labelled bonds can have a greater impact at both societal and financial levels.  Further, investors can earn higher returns by investing in vanilla bonds. Environmental, social and governance (ESG) considerations have become...

A yield curve shows the relationship between interest rates and the term to maturity. It plots interest rates on the y-axis and term to maturity on the x-axis. Importantly, interest rates should be taken from the same credit quality issuer and the same currency, as these other factors will influence...

Part of an insight article from Ardea Investment Management. 1Q22 saw a historically large sell-off of bonds. A lot of policy tightening is now priced in but there are still substantial risks to the outlook for bonds. Historically poor quarter for bonds Sovereign bonds underperformed significantly in March, capping off an...

Following a sustained period of higher inflation, complicated more recently by the spike in commodity prices associated with the Russian invasion of Ukraine, central banks (CBs) are increasing interest rates. For instance, the Federal Reserve has ~7 rate hikes priced in between now and the end of 2022, with...

I recently had an email from Jeff, asking why the value in the iShares Inflation Linked Bond ETF had dropped when inflation is rising. There are a couple of factors at play in explaining the loss in value. 1. 100% investment in government bonds The ETF invests in about 13 government...

By Mitch Reznick, CFA; Robin Usson, CFA; and Sophie Demare of Federated Hermes After record issuance in 2021, the Green, Social, and Sustainability bond market (GSS) has grown to a market capitalisation of just under US$2 trillion. The fastest growing security type in this market is the sustainability-linked bond (SLB)....

Fidante recently hosted a Q&A panel of their fixed income asset managers, which included Teiki Benveniste from Ares Australia Management, Alex Stanley from Ardea Investment Management, Victor Rodriguez from CIP Asset Management and Daniel Siluk from Kapstream. The four asset managers provide an outstanding insight into their thinking regarding current...

It is little surprise that the word “stagflation” is trending as the world grapples with the possibility of both slower economic growth and higher inflation. Stephen Dover, Chief Market Strategist, at the Franklin Templeton Investment Institute, part of Franklin Templeton, notes in a recent paper: “Since the fighting began in...