Many investors who hold offshore securities do not realise that much of the return comes from the FX hedge rather than the asset itself. And now US rates have risen, the benefit for Aussies has turned around.
Author Archive | Christopher Joye
While property and equity markets remain expensive by historical standards, yields achievable relative to risk remain strong in the hybrid market, notwithstanding recent upticks in price.
Factors relating to technical adjustments, timing of bank reporting and offshore influences have created wider spreads on bonds and hybrids which should mean revert in time.