Why a world of opportunity awaits bond investors

James Marlay

Livewire Markets

There is an amazing breadth of opportunity in global fixed income, with many investors not realizing the sheer volume of trading that takes place and the size of bond markets – even here in Australia. I sat down with Ben Alexander from Ardea Investment Management to discuss his ongoing fascination with this asset class and the importance of “relative value”.

“That extra regulation on banks has created lots of new opportunities for investors in the style of investing that we do, which is relative value.”

While the massive liquidity that has flowed into the markets over the past decade has meant high returns from bonds, Alexander says it has been the increased regulation of banks that has created lots of new opportunities for the relative value bond investor.

Tune in to get a better understanding of this style of fixed-interest investing and hear why it is poised to continue to benefit from this shift.

 

Topics discussed

  • The impact of quantitative easing and the returns that can be generated from bonds.
  • “Relative value investing 101”and the wide array of investments to which this style of investing can be applied within fixed interest.
  • The appeal of fixed interest markets and the influences behind his decision to pursue a career in this space.
  • How efficient the bond market has been in factoring in interest rate moves, where he sees the cash rate in 2019, and the economic indicators that he follows closely.
  • The specific return targets that Ardea are aiming for within their relative value strategy.
  • Lessons that Ben has learned that he feels makes him a better investor and why it pays to stick to what you’re good at.

 

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