'So few foreigners speak, read or write Mandarin fluently, so by definition all the information you’re getting is second-hand,' Aberdeen Standard's Donald Amstad says when it comes to assessing Chinese bonds.
Traditional fixed income sleeves will take an entirely different shape in the post-pandemic era, with the allocation of negative bond yields and cash investments hard to justify in portfolios according to Sunsuper head of asset allocation Andrew Fisher.
Low inflation will be one of the key characteristics of the challenging macro economic environment that lies ahead, due largely to the ageing population leading to weaker aggregate demand, PGIM Fixed Income's Nathan Sheets says.
Private equity is taking over the lending ranks from the banks, says Lonsec analyst Ron Mehmet. As volatility tapers off again, demand for alternative fixed income yield in Australia is making alternative avenues more and more attractive.
The investment team is using strategies in liquid fixed income markets to exploit valuation discrepancies between fixed income securities, like yield curve arbitrage, swap spread arbitrage, mortgage arbitrage, volatility arbitrage, and credit arbitrage.
Investors are facing some deeper thinking about defensive asset classes, portfolio diversification and income generation in light of the diminished attributes bonds now hold in light of unique circumstances financial markets are throwing up. Experts discuss the evolving environment and consider relevant defensive strategies.