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February 15

Opinion Added Value in ABS

Investors are moving back into higher-rated fixed income after years of comparative neglect, and we noted that asset- and mortgage-backed securities (ABS and MBS) offered diversified risk exposures, together with relative value caused mainly by technical supply-and-demand (...)

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Reflections on Davos: Business as usual no longer exists

Opinion

Equities head for choppy ride as higher yield market takes hold

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October 2012

Opinion The conditions are there for gold to return to USD 2000/oz over the next six months

The expectation of new central bank action was favorable for gold, causing a renewed surge in its price. Securities purchases by the European and US monetary authorities should help to propel gold towards new records.

September 2012

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 (...)

August 2012

Opinion Beware the dangerous emerging market ‘grand narrative’

The emerging markets (EM) ‘grand narrative’ that you hear constantly churned out is at best misleading and at worst dangerous...

July 2012

Opinion Facebunds : "German bund market is overvalued"

If regulators think the Facebook IPO was a scandal, they should look at the German government bond market...

May 2012

Opinion Financial correlations and loss of common sense

Isn’t correlation in finance charlatanry? We analyze this question through 4 situations that have been observed on financial markets with final investors, asset managers and proprietary traders.

April 2012

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? (...)

March 2012

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 (...)

March 2012

Opinion LTRO – game changer or not?

The ECB announced its second long-term refinancing operation (LTRO) on Wednesday. The auction led to 800 banks tapping the ECB for EUR 530bn in three year funding at 1%.

March 2012

Opinion The Euro will survive, but not the current Euro zone !

If the existence of the euro is not challenged, it is the case of the euro zone in its current configuration. In the same way that cohabitation between countries with maintaining parity exchange had become impossible in the EMS, cohabitation has become impossible within (...)

March 2012

Opinion ING IM predicts a strong year for High Yield

The current attractive yield of 7 to 8% in combination with solid company credit fundamentals continues to attract new investors into the asset class.

February 2012

Opinion A New Hope

There is little doubt that dark clouds are still drifting on the horizon of the global economy. The Euro crisis still has the potential to erupt into an existential threat for the Eurozone’s economic system with a very destabilizing fall-out for the financial system in the (...)

January 2012

Opinion Putting a number on the Dragon

According to statistics from the Quantitative Guru of JP Morgan AM, the year of the Dragon will tend to be a year of prosperity for US equities with an average performance of 8,3% for the 11 years of the Dragon during this period of 140 years with an annual volatility of (...)

December 2011

Opinion The Euro will survive In fine !

We do not believe or at least most of the implosion scenarios of the euro zone regardless of the terms. -Not because we would be trying to find one or several sustainable solutions to the crisis of sovereign debt, but because such a process would cost too much to everybody (...)

December 2011

Opinion 2012: A year in global bonds

According to Bob Jolly, Schroders’ Head of Global Macro, considerable bad news is already in prices and corporate bonds issued by strong companies with cash on their balance sheet and pricing power remain attractive

December 2011

Opinion Russia is not Egypt (yet)

After Egypt, Russia is the second country where capital flight has been significant this year. Now Russia has a tradition of strong capital flight. Ever since the collapse of the Soviet Union, there have been only a few quarters without a net capital (...)

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Opinion Despite fears about the Bitcoin ’bubble’ bursting, the price of the new digital coins is going through the roof

According to Daniele Bianchi, of Warwick Business School, is Assistant Professor of Finance and he researches crypto-currencies incluing Bitcoin, despite fears about the Bitcoin ’bubble’ bursting, the price of the new digital coins is going through the (...)

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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 Investors Cannot Ignore the Debt-Sustainability Question

Despite a pullback in bond yields, clients at our Solving for 2024 event were still uncertain about how to invest in a world of runaway government debt.

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Opinion Time for crypto investors to look beyond bitcoin for returns

New analysis by London-based Nickel Digital Asset Management (Nickel), Europe’s award-winning, regulated digital assets hedge fund manager is highlighting the need for crypto investors to start to look beyond Bitcoin for potential (...)

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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 Investors pay a high price for emotional decisions

New European research from behavioural finance experts Oxford Risk reveals that over 73% of wealth managers believe emotional decision-making costs investors investment returns.

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Opinion S&P Global Market Intelligence: With leverage ratios firmed up, attention turns to RWA density

Much heavy lifting has already been done to raise European banks’ capital ratios, as a new analysis by S&P Global Market Intelligence shows —data drawn from 30 European banks, both eurozone and non-eurozone, shows that these institutions reported at the end of 2015 fully (...)

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Opinion Alibaba’s IPO could well be the end of US dominance in the world technology sector

According to Warwick Business School Professor Qing Wang, the strong performance and fast rise of the Chinese technology companies in the world may shock some outsiders. It is certainly helped by an enormous and fast growing domestic market, but there is (...)

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Opinion US equities remain attractive

Despite the recent downgrade of US debt and the concerns surrounding its economy, Mike Clarfeld, portfolio manager at Legg Mason subsidiary, ClearBridge Advisors explains why the company is still positive on US (...)

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Opinion BlackRock Investment Institute’s Mid-Year 2016 Global Investment Outlook

More volatility looms for the global markets, torn between anxiety over the fallout of the UK’s vote to exit the European Union (Brexit) and the prospect of a strengthening U.S. economy, according to the BlackRock Investment Institute’s Mid-Year 2016 Global Investment (...)

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Opinion Are L/S Equity managers concerned by the covid resurgence?

Managers in the U.S. and Europe are continuing to reduce both their net and gross exposures, now converging near their long-term lows. They are selectively selling or shorting stocks that are the most exposed to tighter restrictions, preferring value stocks instead (to (...)

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Opinion Jean-Claude Guimiot : « There is no ’Smart Beta’ strategy within our asset allocation program »

According to Jean-Claude Guimiot, CEO of AGRICA EPARGNE (asset management company of the Group AGRICA), invest in "Smart Beta" index is not on the agenda ...

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Opinion Overview of Quantitative Finance in France

A short review of quantitative finance in France under the lens of the Next Finance website: Profile of quants, origins and outlook of the industry.

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Opinion Silver squeeze: What’s behind the surge in silver?

Silver is in the spotlight this week, after the popular r/WallStreetBets community on Reddit highlighted the fundamental value in acquiring silver at current levels. The online posting was the catalyst for increased retail flows and awareness. Last Thursday 28 January, the (...)

Focus

Opinion Psychology and smart beta

‘Smart beta’ sounds like an oxymoron. How smart can it be to continue using the same strategy in such fickle markets? A portfolio manager calling on all his skills (‘alpha’) in analysing market environments (the source of ‘beta’) should be able to outperform an unchanged (...)

Focus

Mory Doré’s column

Mory Doré’s views on monetary policy, asset allocation, financial management of banks and understanding of crises

Éclairages Économiques Notebook

The association Éclairages Économiques share with us analysis mostly relying on current research on various economics issues

Selection: Prospects

Regulation Regulatory prospects: 2012 and beyond

2009 was a year of intense reflection on the functioning of the financial sector. There followed an intense regulatory activity in 2010, unfortunately with few formal adoptions of regulations. 2011 marked the surge of the will to succeed with provisional schedules. Where do (...)

Reading An Economic Approach to Marriage

Marriages are not always very stable. A divorce rate of 50 % in developed countries serves to prove. We ask ourselves if it is possible to form stable relationships. An economic analysis may be able to answer this (...)

Note Aging population poses new opportunities for global investment managers

Early conclusions from ongoing SimCorp StrategyLab research point to demographic changes as a key factor influencing the future of the global investment management industry.

Note Launch of green bonds

The term «Green Bonds» is more frequently used to describe a market that should mature very fast in order to deal with numerous requests for investments in the field of green infrastructure projects.

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