After being told how well the trade negotiations between China and the US had been progressing, financial markets were shocked when Trump ordered additional tariffs against China after a complete breakdown in negotiations. Further to this, Trump also threatened additional tariffs against Mexico for purely political reasons around immigration, further... Show More
Global trade data has been slowing rapidly over 2019, but last week’s US employment report was a dire warning, and can expedite the US Federal Reserve (the Fed) towards rate cuts later this year. US employment was weaker at a headline level, with revisions and average hourly earnings also slipping... Show More
While the decline in property prices has been orderly thus far, things could get rough from here, says Charlie Jamieson, Chief Investment Officer at Jamieson Coote Bonds. The missing ingredient to date has been forced selling. Jamieson says that it’s forced selling that can “expediates the entire cycle”, leading to... Show More
Risk assets face an uncertain future as the Fed’s about-turn on monetary policy has left many investors wondering what’s next. However, according to Charlie Jamieson, Chief Investment Officer at Jamieson Coote Bonds, government bonds are well placed, with two clear pathways to a strong performance. On the one hand, a... Show More
This morning the US Federal Reserve removed all further expected rate hikes for 2019 (via its projected 'dot plot' series) in acknowledgement that ''economic growth has slowed''. They also plan to taper the balance sheet roll off, with a full halt by September this year. Both of these developments should... Show More
Diversifying your bond allocation to reach global markets can potentially accelerate returns by adding a layer of currency risk. As evidenced in 2018 – Australian investors with exposure to global high grade bonds ($USD) would have achieved double digit returns on an unhedged basis, in a year of low to... Show More
If a picture is worth a thousand words, then a chart is worth a million of them. So we asked the experts to isolate the charts you need to be watching right now. Read on to see 5 charts that Australia’s investment experts never take off their screens, and to... Show More
Do you remember last year when US 10-year government bonds cracked 3%? I do. Everyone started talking about flattening yield curves, a potential recession in the US and Jamie Dimon said the 10-year could hit 5%… Widely regarded as the risk-free rate used for the pricing of all other assets the... Show More
It's safe to say that credit managers DO NOT want you to read the study we share here. It’s a Christmas cracker to be discussed over the BBQ this summer. In trying to diversify portfolios, are asset allocators actually adding risk using credit? Show More
The fed is now unwinding the biggest monetary experiment in history, which saw $3.6 trillion of asset purchases from the Fed between 2008 and 2015. This is unknown territory, so when we sat down with Charlie Jamieson, CIO at Jamieson Coote Bonds we took the chance to get his perspective.... Show More
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.