Too much money and nowhere to go

The RBA cut the official cash rate to a record low of 0.75% in October. And unless you’ve been hiding under a rock, you’ll know the big 4 are showing reluctance to follow suit. Wage growth is muted, consumer sentiment is weak and the IMF just slashed Australia’s economic growth forecast to just 1.7%. So, where does this leave the Australian bond market?

We had the opportunity to sit down with Adam Bowe, Portfolio manager at PIMCO Investment Management to ascertain his views on the key market drivers in this brave new world. As Adam points out, as interest rates stay lower for longer the search for yield becomes ever more challenging.

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Adam seeks to provide all the benefits investors have come to expect from a core bond holding, including consistent income and low volatility. For further information click the contact button below or stay up to date with his latest insights by following him here.