Sat, Feb 25, 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. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways