Canada, U.S., UK, Australia and New Zealand only major bond markets now without negative rates — if they go, we’re in trouble

With Canada, US, UK, Australia, and New Zealand the only major bond markets without negative rates there lies a great threat to the financial system should these remaining major markets dip into negative territory. Although former Fed Chairman Alan Greenspan does not see this as “that big of a deal” investors would certainly take the…

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India Bond Traders Are on Edge Amid Conflicting RBI Signals

In emerging market news, India bond traders are on edge amid conflicting Reserve Bank of India signals. Just days after announcing measures to lower yields, the RBI has given traders signals about their reluctance in pushing rates down further. This stems from the RBI going back on their word and purchasing bonds at higher than…

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Fed Seen Holding Rates at Zero for Five Years in New Policy

A low-yield environment is here to stay. The US Federal Reserve looks likely to keep short-term interest rates near zero for five years or possibly more. This brings upon certain challenges for investors looking for higher fixed-income yields. Use Overbond’s Similar Bond Screening feature to identify the highest-yielding bonds with optimal liquidity profiles. Source: Bloomberg…

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Can active management pay for itself in fixed-income funds?

While using low-cost bond ETFs for the fixed-income portion of a portfolio seems like the right approach, some say active bond fund management may be a better fit. Source: MoneySense With seemingly perpetual low interest rates—and even the threat of negative interest rates, as seen in parts of Europe and elsewhere—does it make sense to…

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