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
Credit is smouldering right now. When that smoke becomes fire, the door becomes a key hole and only the first few get through. The rest get burnt. Holding credit risks with your equity holdings into 2019 and 2020 seems mighty dangerous. Don’t get barbequed this season. Show More
East Coast residential property continues to soften as credit tightens, but in this interview with Charlie Jamieson, CIO at Jamieson Coote Bonds, he warns that property investors might make matters worse by becoming forced sellers in a falling market. Charlie outlines the mechanics of margin calls and forced selling, and told... Show More
The Fed has hiked 3 times this year and plans another four hikes by the end of next year. Their collective impact is still ‘in the post’ as hikes take time to bite. When we asked Charlie Jamieson, CIO at Jamieson Coote Bonds what he expects, he gave a sobering... Show More
The US Federal Reserve (the Fed) lifted interest rates to 2.25% as was widely expected in September and commented that monetary policy is no longer ‘accommodative’. Show More
When a young Charlie Jamieson arrived at work in London on September 11th, 2001, little did he know how much that day would affect his views on markets. At the time, he was trading US Dollar bonds from Merrill Lynch’s London office, having just left the New York office three... Show More
2018 has been, so far, a year of transformational markets driven by populism, politics and policy. Tectonic plates are shifting under the market, and investors are rightly nervous. Despite nearer term fluctuations, U.S. equity markets still remain close to record valuations while looking fatigued. Meanwhile, Quantitative Easing (QE) is being... Show More
Jamieson Coote Bonds (JCB) is an active manager of high-grade bonds specialising in duration management and security selection. JCB's investment process involves deep macro and technical analysis, investment execution and risk management to defend and protect portfolios over time. Show More
The US Federal Reserve raised interest rates by 0.25% as expected to the upper band target of 1.75%, 0.25% higher than that of the RBA cash rate. The Fed rationalised the increase noting the strengthening of the economic outlook in recent months. Show More
The volatility genie has now been released and is unlikely to go back in the bottle as late cycle fiscal expansion in the US combined with higher global funding rates from the US Federal Reserve will have markets on their toes going forward. Show More
So far in 2018, markets have grappled with rising bond yields, full employment, US Federal Reserve tightening, a weak USD currency and rising fiscal deficits, spurred by tax reform. We have seen these exact issues before. The year was 1987. 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.