Fixed Income
Gopi Karunakaran

Last fortnight bond yields globally dropped to the low end of recent ranges and reached new record low levels in Australia, driven by a growing consensus view of slowing economic growth and lower interest rates going forward. While there is much uncertainty as to whether this scenario actually materialises, the... Show More

Education
Gopi Karunakaran

This is a question that’s currently very relevant for corporate bond investors, particularly in the ‘safe’ investment grade (IG) sector. Since the 2008 financial crisis, corporate bond markets have been in a real sweet spot. On one side they’ve seen huge capital inflows from yield chasing investors and on the... Show More

Fixed Income
Gopi Karunakaran

Livewire recently got in touch with us to tell the story of 2018 in one chart, and how it is instructive going into 2019. Our choice, the 3 Month US Treasury Bill Yield. Why is it important? Even if you have no exposure to fixed income, interest rates still matter …... Show More

Collections

If 2018 were a boxing match, you would be Mundine and Mr. Market would be Horn. It only took you 96 seconds to be battered and bruised to the floor. What went wrong? What did you miss? Like Horn, markets have been unforgiving. Globally, we have seen one of the... Show More

Fixed Income
Gopi Karunakaran

We have been in a period where financial market volatility has been abnormally low and as such, the focus in fixed income has become overly skewed to how much interest income can be generated, at the expense of ignoring downside risks. For this reason, the price component of bond returns hasn’t... Show More

Expert Insights

The ‘reach for yield’ has caused formerly defensive portfolios to gradually venture into higher risk assets that could leave them exposed to downturns. As a consequence, Gopi Karunakaran, Portfolio Manager at Ardea Investment Management urges investors to question just how defensive their portfolios really are. In this short interview he... Show More

Fixed Income
Gopi Karunakaran

In fixed income investing, there are two conventional sources of return that investors are familiar with – collecting interest payments from bonds (i.e. income) and correctly predicting the direction of rates, which delivers capital gains or losses (i.e. duration exposure). The expected returns from both these sources are heavily challenged by... Show More

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