Low Yields, the Same Risks, and Rising Leverage
As interest rates keep falling and leverage starts rising, risks remain the same.
View Article14 Charts Worth Your Time: Apple, Macro Trends, and Global Inequality
Am I the only one starting to feel like we're pretty darn late in the business cycle?
View ArticleCorneille, Sperna Weiland, and Zürcher Win European QuantAwards 2014
It is our pleasure to introduce to CFA Institute readers the results of the European QuantAwards 2014 competition. We hope you enjoy the summaries of these three winning papers by their student...
View ArticleMartin Wolf on the Eurozone, the ECB, and General Investment Woes
Gustavo Teruel, CFA, recently spoke with Martin Wolf of the Financial Times about his latest book, recent developments in the eurozone, and the global investing outlook more generally.
View ArticleThis Chart Breaks Capitalism — Can the Fed Fix It?
As I write this, US Federal Reserve Chair Janet Yellen and the Fed Board of Governors are ensconced in another two-day meeting. They will make a statement at the end. That statement will either move...
View ArticleHow Will Negative Interest Rates Change the Rules of the Game?
Recent events have challenged traditional economic theory about low (and negative) interest rates. Is it a brief aberration or the beginning of an unfamiliar and potentially treacherous new normal?
View ArticleWeekend Reads for Global Investors: Will the Fed Raise Rates and Why You...
What will the Fed do next week? The world is watching and so should you.
View ArticleIntroducing the Unterest Rate
Let's stop saying "negative interest rates" and come up with a new word for a new phenomenon.
View ArticleAre Low Interest Rates Driven by the Fed or by Fear?
Next time you hear a pundit or an investor complain that the Fed is keeping rates too low, consider the evidence that suggests rates are low because nobody really has a grasp on which direction future...
View ArticleThe C-Suite Speaks: Warren’s Wisdom
Last week was a slow one for earnings calls, but Warren Buffett did do an interview with CNBC that featured classic Buffett wisdom.
View ArticleInterest Rates, the Fed, and Inflation’s New Normal
If new disinflationary pressures are left unaccounted for, inflation, holding all else equal, will remain subdued, and the pace of rising rates will be slower than was expected by either the market or...
View ArticleThe C-Suite Speaks: A Strong February
The management teams that we listened to last week were relatively unanimous in their assessment that the US economy showed strength last month.
View ArticleDumb Alpha: Don’t Get Carry Traded Away
Carry trades profit from investor herding just like momentum strategies. As more and more investors pour money into high-interest currencies and borrow on low-interest currencies, the demand for the...
View ArticleThe C-Suite Speaks: Hotel California
If the Fed doesn't feel comfortable raising rates above 0.25% in the current conditions, will we ever leave this low rate environment?
View ArticleWeekend Reads from India: Interest Rates and Munger’s Take
In the latest Weekend Reads compilation, Shreenivas Kunte, CFA, curates readings on the Berkshire Hathaway annual meeting, interest rates, the economic outlook in China and India, and more.
View ArticleWhy Savers Might Miss Out on the Benefits of Higher Interest Rates
Do higher interest rates actually lead to higher returns on savings? Research shows a 1% increase in interest rates by the US Federal Reserve equals a 0.34% increase in the rates paid by banks on...
View ArticleReduced Viability? Banks, Insurance Companies, and Low Interest Rates
In the current low-rate environment, there is reason to wonder about the viability of banks, insurance companies, and indeed any institution that generally depends on the spread between long- and...
View ArticleWeekend Reads: No Alternatives and Things That Really Matter
The search for alternatives, things that really matter in the world, and a brief foray into the active vs. passive management debate are the topics included in this week's edition of Weekend Reads.
View ArticleThe Outlook for Fixed Income: Stagnant Prices, Tighter Money
Interest rates are nearing a lower bound, David Schawel, CFA, tells Will Ortel during a recent Take 15 interview. “Most likely we’re not going to be in a 30-year bull market for interest rates falling...
View ArticleEdward Altman: The Benign Credit Cycle Is in Extra Innings
Edward Altman says the benign credit cycle is in “extra innings,” but the metaphorical relief pitchers — central bankers — are running out of gas. Though most indicators point towards the end of the...
View ArticleTilting Portfolios to Leverage Macro Trends and Political Winds
Back in the 1980s, “monetary policy was a great way to stimulate the economy,” Jack Ablin, CFA, said. Not anymore.
View ArticleWeekend Reads for Investors: Highly Caffeinated Edition
Jason Voss, CFA, provides his choices for Weekend Reads for Investors. This edition features surprising facts about coffee consumption, global choke points in the food supply, graphics showing how...
View ArticleNine Charts: Dangerous Curves
With rising rates and a flattening yield curve, can there be opportunity in fixed-income markets? Sloane Ortel examines what's happened and what to do next.
View ArticleWeekend Reads: 14 Charts and No Foolin‘
If the world feels a little crazy, it's because you are paying attention, writes Sloane Ortel. But stick around. We'll try to turn it into fun.
View ArticleThe Dark Side of Low-Volatility Stocks
Low volatility may be a great marketing concept, but does it work as a strategy?
View ArticleSmart Beta: How to Avoid Fixed Income’s “Crocodile Jaws”
Can smart beta help bond investors escape fixed income's "crocodile jaws"? Salvatore J. Bruno and Kelly Ye, CFA, weigh in in an interview with Paul Kovarsky, CFA.
View ArticleBook Review: Bond Pricing and Yield Curve Modeling
Riccardo Rebonato combines theory with current empirical evidence to build a robust understanding of what drives the government bond market.
View ArticleThe Fed Has Few Options, Says Danielle DiMartino Booth
“You don’t have a lot to work with when the next discussion around the table is negative interest rates,” says Danielle DiMartino Booth.
View ArticleJust a Little Higher? Antti Ilmanen on the Low-Return Challenge
How can investors adapt to a low-for-long rate environment? Antti Ilmanen proposed several potential strategies.
View ArticleFinance, Bubbles, Negative Rates: The What Ifs . . . ?
What if "normal" real interest rates are not coming back?
View ArticleBook Review: The Income Factory
The Income Factory shows that double-digit returns are achievable from income and its reinvestment alone.
View ArticleMyth-Busting: Low Rates Don’t Justify High Valuations
Lower interest rates may not, in fact, lead to higher P/E ratios.
View ArticleBeware the Bubble? The US Stock Market Cap-to-GDP Ratio
The Buffett Indicator is flashing red and has been for a while now.
View ArticleBook Review: The Day the Markets Roared
Henry Kaufman shows that he was an innovator in the analysis of financial markets.
View ArticleMarket Resiliency, Capital Formation, and Investing for Our Future
The story of the markets over the last 10 years has been one of remarkable change. Yet economies are still struggling.
View ArticleInflation: What If It Doesn’t?
Joachim Klement, CFA, expects inflation to fall. But that doesn't stop him from asking, What if I'm wrong?
View ArticleTop 10 Posts from 2021: The Buffett Indicator, GameStop, Inflation!
What articles most resonated with readers in 2021? Aswath Damodaran on the COVID crucible, career tips from Eric Sim, CFA, and more.
View ArticleHigher Interest Rates: Some Hedge Fund Strategies May Benefit
Rising interest rates will provide a tailwind to three hedge fund strategies, in particular.
View ArticleHedging the Interest Rate Hiking Cycle
Amid rampant inflation and rising interest rates, how can we protect ourselves from interest rate volatility, from anticipated and unanticipated hikes?
View ArticleWhy Invest in Stocks?
Equities are not necessarily more risky than such "safe" assets as US Treasuries.
View ArticleBook Review: The Price of Time
Almost unique among serious finance books, Edward Chancellor’s The Price of Time serves well as bedtime reading.
View ArticleEconomic Value of Equity (EVE): Protection from Rising Interest Rates
Economic value of equity (EVE) can help determine how well a company can weather interest rate hikes.
View ArticlePowell Prescribes More Economic Pain: Three Financial History Lessons Support...
“The first lesson is that central banks can and should take responsibility for delivering low and stable inflation,” Jerome Powell says.
View ArticleThe Inflation Game: War, Peace, and the Perils of Central Banking
Recession is now a virtual inevitability.
View Article--- Article Not Found! ---
*** *** *** RSSing Note: Article is missing! We don't know where we put it!!. *** ***
View ArticleWill They, or Won’t They? The Risk of Betting on the Fed
Recent market volatility has been driven by speculation about what the Fed will do next.
View ArticleSplitting the Risk: How to Manage Interest Rate Risk in Project Finance
How can the two primary stakeholders in project finance best allocate interest rate risk?
View ArticleProject Finance: Beware Interest Rate Miscalculations
To navigate the storms of interest rate variability, we need foresight and flexibility.
View ArticleA Mixed Outlook? The Banking Sector and Its Three Key Drivers
To understand the mid- to long-term outlook for the banking sector, we need to understand the key drivers at work in the industry today.
View ArticleCan the Fed Pull Off a Soft Landing?
The yield curve is inverted, implying an imminent recession, but the stock market is at or near record highs. What can we make of these contradictory signals?
View Article
