Mon, Jan 16, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Australian bonds offer safe haven during financial crisis while their savers switch to self-managed pension pools

Thursday, July 26, 2012

Beverly Chandler, Opalesque London: Melbourne, Australia headquartered investment researchers Zenith Investment Partners’ Alternative Review reflects that in these troubled times, countries with apparently low risk of default - such as Australia - are seeing their 10 year bonds on a glide path to zero, while the 10 year yields on Italian or Spanish equivalents are doing the other thing.

Zenith’s Daniel Liptak quotes Fulcrum’s Gavin Davies who ascribes this phenomenon, not to central bank management or quantitative easing but by investors, driven by fear, who are buying bonds with perceived negligible risk as insurance.

Liptak’s view is that bonds in strong economies may be expensive and equities may be cheap for some time to come. "The recently announced low inflation rates reported in Australia should add downward pressure on RBA interest rate targets and consequently a negative for the Aussie" Liptak writes.

"We are inclined to continue USD credit in many flavours, paying for it through shorting the AUD. We are cautiously exploring methods to capture exposure in distressed European credits. While corporate balance sheets are on the whole healthy, we are not rushing into event driven strategies - given the macro risks, we believes most CEOs and their advisors will be more inclined to sit on their cash balances rather than increase M & A activity which we would expect to occur in more normal environments."

In another development in the Australian superannuat......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t