All Posts By

Bridget Urlich

Covid-19 – What happens when oil futures go negative?

By | Insights
Volatility across the different asset classes in financial markets has been remarkably stable in the last couple of weeks when we consider the amount of ‘unknowns’ and economic risks in...
Volatility across the different asset classes in financial markets has been remarkably stable in the last couple of weeks when we consider the amount of ‘unknowns’ and economic risks in global markets from COVID-19. However, this low volatility environment has masked a significant move lower in commodity prices, and notably oil, with Brent crude back below US $26.00 a barrel, a ~62% drop in price year to date. Many sources of Oversupply Furthermore, there has been an almost unbelievable fall in the US West Texas (WTI) oil price overnight, with the soon-to-mature futures contract trading to as low as -$40... Read more

Ten Year Government bonds, Investment or Insurance?

By | Insights
The last couple of weeks has been something of a rollercoaster ride for investors, with volatility spiking as the world and financial markets try to come to grips with COVID-19,...
The last couple of weeks has been something of a rollercoaster ride for investors, with volatility spiking as the world and financial markets try to come to grips with COVID-19, and both the human and economic implications. Unsurprisingly, we have seen a co-ordinated global central bank response. In simple terms, the US, Canada and Australia have all come out and lowered interest rates, with it widely expected that the United Kingdom and New Zealand will follow suit. What has been somewhat lost in the ensuing chaos, is the yield or return of a New Zealand ten- year government bond is... Read more

Nature is no match for liquidity

By | Insights
While it is too early to predict how deadly the Coronavirus might become, the explosion of new cases and its relatively high death rates (~2%-3% vs usual influenza of less...
While it is too early to predict how deadly the Coronavirus might become, the explosion of new cases and its relatively high death rates (~2%-3% vs usual influenza of less than 0.1%) are unnerving the markets. Also, unlike SARS, China is today far more important at both the forefront of global supply chains and consumption, and has a far greater impact on the global economy. The rush for safety in financial markets and erosion in growth expectations is already flattening interest rate curves, reinforcing US dollar strength (as a safe-haven currency) and sapping global sentiment. Indeed, if it becomes evident... Read more