hi Lloyd, you could consider CC JCB Global Bond Fund. The ultimate assets are $USD priced high grade government bonds and we offer Australian investors two classes, AUD hedged and AUD unhedged with a no cost option to switch between classes at will, giving investors full flexibility to manage the currency exposure whilst benefiting from institutional FX conversion rates available to us as the manger. Further details are available on the website.
Australian inflation has been below RBA mandate for all but one of the last twelve quarters. Any lift in inflation brings the RBA to hike which triggers a deflationary recession.
Andrew, CBs most certainly set short dated funding rates. Long dated rates are set by markets and inflation expectations. We are seeing a scenario currently where the market is forcing the FOMC hand. The market is addicted to stimulus and if CBs take it away the volatility will hardly be contained to fixed income. Fixed income will be the first asset class to go but if that decay is sustained that volatility will spread like wildfire. I agree with you. CBs are totally snookered. Look at what they do rather than say. QE1 ends, S&P drops 20% so they immediately launch QE2. That ends and S&P drops 19% so they go to twist. Talk of ending twist early and we have 'taper' tantrum so they immediately extend. Their is a policy floor at point (down 20%) let's hope data holds up so FOMC can deliver on all that chat and actually hike in Dec. I actually think bonds will rally after that, just like last Dec
Angelo, one of the great benefits of bond investment is that returns are fixed at time of purchase. They can reval higher or lower over a bonds life, but assuming the credit quality of issuer is sound, the bonds provide income in all scenarios. You certainly don't have to realise losses.