Opinion Total Return Futures set for further growth as buy-side adoption increases
Eurex launched Total Return Futures (TRFs) in 2016 in response to growing demand for listed alternatives to total return swaps. Since then, the product has evolved into an instrument used by a wide variety of firms for multiple purposes, enabling firms to lock in financing (...)
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Opinion Review of the chinese economy at the end of the summer of 2019
The monthly data published at the start of the second quarter are fairly mixed and show no tangible signs of growth momentum improving in China. The GDP published for the second quarter has recently confirmed this sentiment. The slowdown at work since the start of the decade (...)
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Opinion Accidental Americans Create Headache for French, European Banks
Boris Johnson, who was born in New York but left when he was five, found it outrageous that he was obliged to pay US taxes. The easy solution was to pay to renounce his US citizenship, which he did in 2016. Hundreds of other accidental Americans don’t have the luxury of such (...)
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Opinion March higher in yields beginning to bite
Two factors in addition to the ongoing climb in yields may have played a part in this equity market drop. Firstly, consumer sentiment deteriorated with a sharp drop in expectations. The drop in confidence (103.0 from 108.7) was less significant than the much larger drop in (...)
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Opinion Risk free assets ?
But what is safe? Is it the AAA or AA rating provided by rating agencies such as S&P and Moody’s? Does “safe” equal goodwill bonds issued by sovereign countries such as France, Japan, the United Kingdom or the United States? (...)
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Opinion A short lesson in exchange rate determination
François Hollande, the French President, recently called for action against the strong euro, stating that the economy could end up with an exchange rate “out of line with the fundamentals”. Although plausible, exchange rates are probably “out of line with the fundamentals” most (...)
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Opinion Three reasons why the 21st century will be American
“Which country will be the new China? Which country is ready to dominate the world economy? Not India, not Brazil, nor any other rapidly expanding emerging country, says Henk Grootveld. No, it is…the US.”
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Opinion Benchmarking: The Multi-Asset Class Exception
Ask any active fund manager about his benchmark, and he will have a ready-made answer. Even fixed-income managers have plenty of indices to choose from. The call is trickier for diversified fund managers...
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Opinion Quantitative Management: French Managers make resistance
Despite respectable performances, French quantitative managers are struggling to significantly increase their assets. Is it the fault of too cold local institutional?
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Opinion Robots have taken power in finance
Describe the real world with numbers is a trend that seems to be accelerating. Thus, digital technology is associated with financial models to show that we (human) interact with our environment using mathematical (...)
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Opinion The European Credit Strategist: The year that QE failed?
According to BofA Merrill Lynch Global Research report, Month-to-date, investment-grade cash bond spreads are 21bp wider and high-yield cash bond spreads are 73bp wider. September is shaping up to be the worst month of the year for performance, and the year-to-date picture (...)
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Opinion Coronavirus: research, research, research…
In terms of data, the impact of the economic freeze is seen first on jobs; unemployment will rise dramatically, with the peak expected in the second quarter numbers. GDP contraction will follow – for example, the recent eurozone PMI (Purchasing Managers Index) was very weak (...)
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Opinion Are french OAT overvalued ?
According to John Gilbert, CIO of the Berkshire Hathaway’s subsidiary General Re-New England AM, French 10-year bonds should yield between 4.5% and 5%, closer to Italian and Spanish bonds rather than German ones. However, This opinion is not shared by the majority of the (...)
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Opinion Japan Elections: What an Abe victory means
Prime Minister Shinzo Abe’s ruling Liberal Democratic Party (LDP) of Japan has emerged victorious in Japan’s October 2017 lower house snap election. The result exceeded expectations. On its own, Abe’s LDP secured more than half the number of lower house seats. As a coalition, (...)
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Opinion Brexit illustrates the diversification benefits of trend-following strategies
During the Brexit, the average CTA did very well: the SG Trend Index, a performance indicator for trend-following strategies, jumped 2.9% on 24 June. Trend-following strategies outperformed both equities, with the MSCI World Index dropping 4.9%, and hedge funds in general, (...)
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