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. Show More
Sudden outbreaks in volatility through this year have spooked the equity markets, and investors are questioning if more is to come. We spoke with rate market expert, Gopi Karunakaran, Portfolio Manager at Ardea Investment Management, who warned that there could be more to come. Show More
When a triple-B-rated utility company issues a 3-year bond at a negative yield, perhaps it’s time for the credit cycle to call last orders at the bar? Gopi Karunakaran, Portfolio Manager at Ardea Investment Management flags some late-cycle behaviour, and warns of an imminent structural shift. Show More
The Australian Commonwealth budget announcement overnight has confirmed the size and trajectory of the Australian government bond market. The Australian Office of Financial Management’s (AOFM) updated issuance plans also indicate that bond supply will remain persistent. This acts to underpin capacity in the bond market for large investors seeking access... Show More
Sacrificing liquidity in return for additional yield can be attractive if the compensation is sufficient and the time horizon of capital is appropriate. But corporate bond markets are currently not providing sufficient compensation for growing illiquidity risk. Show More
It’s difficult to make predictions, especially about the future. Like many investors, Gopi Karunakaran from Ardea Investment Management once thought that investing meant having high levels of confidence about the future. However, he very quickly learned the truth; “uncertainty is always there, you can’t get away from it.” Show More
At the height of the financial crisis, credit markets seized up and liquidity disappeared. In the aftermath of Lehman’s bankruptcy, this caused huge headaches for investors, institutions, and regulators. It may surprise you to learn then, that turnover in these markets is lower today than it was at the nadir... Show More
In recent years, markets have reacted positively to signs of inflation. Inflation has been indicative of improving conditions in the economy, and central banks have been encouraging it through artificially low rates and quantitative easing. Gopi Karunakaran, Portfolio Manager at Ardea Investment Management, says this is all changing in 2018. Show More
As global expectations of rising interest rates and inflation begin to become more mainstream, investors are wise to pause and reflect on what this means for their overall portfolios. Against this backdrop, both long-term and more recent data strongly suggests that simply holding passive allocations to government bonds may not... Show More
As fixed income investors concerned with protecting the value of client portfolios, two interesting charts for us at present are the outlook for US as well as Australian inflation and the level of volatility in fixed income markets. Show More
Both UK and US central bank comments reveal thinking on policy responses to future rises in inflation. Show More
During the 19th century, several German and American scientists undertook experiments observing the reaction of frogs to slowly heated water. Without exploring the detail of the experiments or the debate over their scientific validity, they spawned the parable about a frog being boiled alive if cold water were heated at... Show More
