Tue, Dec 6, 2016
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. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released