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...
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...
Fixed Income News spoke with Barry Ziegler, Head of Fixed Income at Bell Potter Securities about the capital notes market outlook in 2022, coming off the first major offer for the year from ANZ.
How do you see the outlook for Capital Notes as an investment in 2022?
The demand is...
Phil Strano, Portfolio Manager at Yarra Capital, explains why he thinks Australian corporate floating rate bonds will continue to perform, even if the equity market correction continues.
The current state of markets could well resemble the quote attributed to American writer Mark Twain: “history doesn’t repeat itself, but it often...
By Sam Morris, CFA – Senior Investment Specialist, Fidante Partners & Pete Robinson, Head of Investment Strategy and Portfolio Manager, CIP Asset Management
Interest rates have decreased dramatically over the past decade and fixed income returns have declined in tandem. Some of these changes may unwind as we enter a...
As inflation risks continue to evolve, especially in the United States, the United Kingdom and most of the emerging markets, followed by the Eurozone, asset manager Amundi has released an investments insights blue paper looking at these trends and how multi-asset portfolios can be resilient in an inflationary regime....
Hybrids have long been sought after for high income and franking credits. The Australian market mostly consists of bank and financial institution securities that have similar features.
The international market is much more diverse and offers some really interesting options, but the investments can also be much higher risk.
Daintree recently...
