interest rates

Quantitative easing, negative interest rates, and modern monetary theory (MMT) have all but forced the end of the 30-year bull market in government bonds; or have they? As we enter 2021 the chorus of commentators warning of significant capital losses on long-term bond investments and the reducing diversification benefits of that holding continues to grow….

As the year from hell winds down around the world, an influx of 2021 outlooks have flooded adviser inboxes around Australia. Most should be taken with a grain of salt, the standard global equity managers flagging strong equity returns and long bond managers suggesting the duration game isn’t over yet. In my experience though, the…

There are positive signs for the Australian economy following Wednesday’s third quarter GDP figure. It was a positive reading of 3.3% quarter on quarter, signalling a rebound in the economy is well underway. This marks the end to the pandemic led economic downturn and a gradual return to business normality. It was a massive beat…

Assets in alternative investments are expected to grow by 9.8 per cent a year over the next five years, to hit US$17 trillion (A$23.4 trillion) by 2025, according to the latest research by Preqin, the global alternatives research and data provider. Private equity will double to US$9.1 trillion and Asia will be a “huge driver.”…

Leading global ‘distressed debt’ manager Howard Marks and his Oaktree Capital firm are well-known for their sometimes combative and private equity approach to investment. The firm has increased its work in Australia in recent years after achieving some success buying-out and breaking-up the Blue Sky Alternative Asset Management empire, and more recent involvements with Virgin…

Not only is 2020 the marking of a new decade, but it potentially marks of a new paradigm of investing. The last 30 years shouldn’t have been that difficult for long-term investors and those using the traditional 40-60 balanced portfolio. The historic fall in interest rates that has occurred since the 1980s means that both…

A busy year for investment researchers just got busier, with Evergreen Consulting launching its own investment research arm, Evergreen Ratings. This follows a number of acquisitions and asset sales in the sector. The group will run alongside the existing Evergreen Consulting business, which was founded by the irrepressible Angela Ashton. Evergreen Consulting has quickly built…

In its latest quarterly statement on monetary policy, the Reserve Bank of Australia declared its preparedness to “ease monetary policy further if needed”.

The third quarter capped the best year-to-date return for the Bloomberg Barclays US Aggregate Bond Index since the first nine months of 2002. Although bond prices may continue to advance, we anticipate lower returns may accompany a rise in volatility in coming quarters.

The unwillingness of the major (and other) banks to immediately cut their headline mortgage rates by as much as the Reserve Bank cuts its cash rate always attracts bad press, as well as condemnation from treasurers and prime ministers.