If a government or a too big to fail government bank can borrow near 0%, then theoretically it should have no problem making a profit or increasing real economic growth I have been increasingly suspicious since late 2011 that Sir Thomas Gresham (1519-1579) may be the modern John Maynard Keynes.… Read More »
Gregory Kolb, CFA -
Investors would do well to beware of portfolios with high beta but no alpha, as being bullish in a bull market is neither skillful nor financially healthy The stock market has landed a punch in recent months. As we assess the damage and consider what might come next, let us… Read More »
State Street Global Exchange released the results of the State Street Investor Confidence Index® (ICI) for October 2015 The Global ICI decreased to 114.3, down 2.3 points from September’s revised reading of 116.6. The decline in sentiment was driven by a decrease in the North American ICI from 133.2 to… Read More »
More than one in three insurance professionals and fund managers (36 percent) believe asset management companies are unprepared for providing the level of detailed data their insurance clients will require under Solvency II The findings of the State Street survey of 100 insurance executives and fund managers also reveal that even… Read More »
The IMF is predicting global growth this year to be slightly lower (at 3.1%) than last, and then strengthen to 3.6% in 2016. Within this, they are expecting a pickup in developed world growth while the developing world will slow. The IMF give a number of factors as to why… Read More »
The outlook for most large banks around the world remains favorable One reason is that many global banks have been reporting unusually low non-performing loan disposal costs for a couple of years. Why? A financial crisis, like the one we had in 2008, is often followed by a period of… Read More »
Cheryl P. Stober -
Many characteristics make bank loans stand out from their fixed income peers, but here are three key factors we believe everyone should know about bank loan investing 1. Bank loans do not have interest rate duration. Bank loan interest payments are typically based on a spread above three-month LIBOR. These… Read More »
Our global growth baseline is an unsynchronised expansion, with pockets of recession, but a great deal depends on how the U.S. economy copes with the coming increase in interest rates Heatmap: Roubini’s end-2015 Nominal Policy Rate Forecasts (%) Source: Roubini Global Economics. Key Macro Theme 1: Our Fed Call and… Read More »
The developed world is beginning to run on empty because investments discounted at near zero over the intermediate future cannot provide cash flow or necessary capital gains to pay for past promises in an aging society So the Fed has chosen to hold off on their goal of normalizing interest… Read More »
Taking into account to the recent equity-market turmoil and the economic weakness abroad, the U.S. Federal Reserve (Fed) left the key interest rate unchanged at its September meeting No rate hike in September …The Federal Open Market Committee (FOMC) left the federal funds rate, the U.S. key interest rate, unchanged… Read More »
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