Ardea Investment Management

Bond issuance to underpin rising market opportunities

Tamar Hamlyn

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

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More Risk for Less Return

Gopi Karunakaran

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

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Two asymmetric opportunities

Livewire Exclusive

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

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A dangerous consensus

Livewire Exclusive

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

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A paradigm shift for global markets

Livewire Exclusive

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

Does Fixed Income Still Diversify Portfolio Risk?

Gopi Karunakaran

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

Two charts we are watching closely right now

Ardea Investment Management

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

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Developments in Inflation Expectations

Ardea Investment Management

Both UK and US central bank comments reveal thinking on policy responses to future rises in inflation. Show More

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How quickly can you boil a frog? Why we should still think about inflation.

Ardea Investment Management

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