Fixed Income

From Covid to conflict, all it took was just a few weeks for the market to shift its attention to the unfolding crisis in Ukraine and away from the pandemic.

“We recently cut risk but stick with stocks over bonds for now. Equity prices now reflect much of the worsening macro-outlook and hawkish Fed” were the latest comments from the Blackrock Investment Institute in their weekly research note.

The Reserve Bank of Australia officially joined the hiking party this month, and while the implications for Australian homeowners and businesses is important, it has little impact on the global economy.

In their latest quarter fixed income outlook, titled ‘Investing Through Inflation and Growth Uncertainty’ global asset manager Neuberger Berman has flagged somewhat of a non-consensus view on the outlook for inflation, growth and fixed income assets.

The classic way of thinking has been to ditch bond funds as interest rates rise. Why? Because as rates rise, bond prices have an inverse relationship, and drop in value as newer bonds with higher yields become more attractive. Sounds about right?

The near $1 billion Martin Currie Real Income Fund has been preparing for an outbreak of inflation since 2021, according to Ashton Reid, Portfolio Manager of the domestically focused strategy.

From the outset, it is important to highlight that I do not disagree that interest rates should be higher than the current ’emergency’ settings by the Reserve Bank of Australia.

2022 has been a difficult time for most investors, but for none more so than bond fund managers. The New Year’s resolution of global central banks to (finally) aggressively combat accelerating inflation has seen an incredible surge in bond yields in Australia and around the world. A case in point is the Australian 10 Year…

Australian investors’ appetite for equities dropped in the first quarter of 2022, especially for international shares which have dropped more than Australian shares. Following record inflows to managed equity funds in 2021, the value of inflows between January and March 2022 plunged to $1.2 billion, falling from a quarterly average of $3.8 billion last year,…

It’s time for investors to move heavily into alternatives. That’s the message Evergreen Consultants are sending advisers. Angela Ashton, founder and director of the investment consulting firm, says it is time for investors to explore the alternatives sector more broadly, including gold, commodities, private credit, total-return multi-sector funds and real-asset funds with holdings such as…

There has been a saying in markets for the last few years that fixed-income investments, favoured for their guaranteed returns and correlation benefits, have actually become “fixed-loss.” The driving factor was the threat (and now, realisation) that bond yields and cash rates were set to turn higher, reversing a four-decade tailwind. Naturally, these types of…

Global investment consultant and support network to the pension fund industry, bfinance, this week released its latest Market Intelligence and Market Trends report, covering the final quarter of 2021. While the world has changed dramatically since the calendar turned over, there are some powerful insights for financial advisers and other asset allocators. According to its…