Disclaimer

BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.

What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License
  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
  • that is a body regulated by APRA other than a trustee of:
    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993
  • that is a body registered under the Financial Corporations Act 1974.
  • that is a trustee of:
    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.
  • that is a listed entity or a related body corporate of a listed entity
  • that is an exempt public authority
  • that is a body corporate, or an unincorporated body, that:
    (i) carries on a business of investment in financial products, interests in land or other investments; and
    (ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.
  • that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
I Disagree
High yield remains our preferred risky asset

High yield remains our preferred risky asset

09-03-2016 | Insight

February was a month with two faces. The first part of the month was terrible for risky assets. At a certain moment it felt like we were reliving the financial crisis of 2008. The already firmly established growth fears were suddenly supplemented with fears over financial stability. The viability of the financial sector was questioned as more and more central banks seemed to be moving towards NIRP (a negative interest rate policy), the Bank of Japan being the latest to join this infamous club.

  • Lukas Daalder
    Lukas
    Daalder
    Chief Investment Officer

The fear-mongering didn’t stop there; at some point the mother of all fears started to make ground, namely: Have we reached the point where monetary policy has lost its potency? And just when you thought the market would spiral completely out of control, it stabilized, turning the latter part of February into a much risk-friendlier period.

Stay informed on Credit investing with monthly mail updates
Stay informed on Credit investing with monthly mail updates
Subscribe

In a poor month for most assets, gold kept on shining. Source: Robeco.

We are not on the verge of recession

How firm the footing is remains uncertain. The only comfort we can give is that we do not think that we are on the verge of a recession. We are also starting to get some backing from economic data, the most noticeable one being a firm rebound in US manufacturing ISM, taking it almost back towards the 50 threshold. In line with our fundamental view we haven’t changed our positioning. We continue to prefer risky assets, and high yield is still our preferred one. 

Far from facing recession, it is the US that keeps on rebounding, as Europe keeps on disappointing. Source: Citigroup.