Bonds

Commodities Continue To Dominate Deep-Value ETF Ranking

The slide in global markets in recent weeks has cut prices near and far, but the steepest declines for the trailing five-year return – a proxy for the value factor – are still linked with the dive in commodities. That was true for the deep-value list in October and the profile is intact in toda ...

Panoramic Weekly: Brexit, May be yes, maybe not

After more than two years of bitter discussions, leadership battles, thousands of hours and millions of pounds spent on a divorce agreement between Britain and the EU, sterling barely blinked when a draft deal was finally struck. Investors held off in an uncertain environment, only to move quickly ...

November 14, 2018

PerpetualDiscounts now yield 5.66%, equivalent to 7.36% interest at the standard equivalency factor of 1.3x. Long corporates now yield about 4.20%, so the pre-tax interest-equivalent spread (in this context, the “Seniority Spread”) is now about 315bp, a slight (and perhaps spurious) narrowing f ...

CalSTRS to Divest of Private Prisons?

Chief Investment Officer reports, CalSTRS to Divest of Private Prison Companies:The investment committee of the California State Teachers’ Retirement System (CalSTRS) has approved divesting its holdings in CoreCivic and GEO Group, the two US publicly held companies running private correctional fa ...

Looking for the elusive silver lining.

Markets Oil Gold G-10 EM FX Asia Bitcoin Markets U.S. stocks fell for a fifth straight day as investors remain bewildered by the political ping-pong match around Brexit.More questions about NAFTA 2. While trade jitter has everyone on edge as the doomy global economic growth narrative continues t ...

Corporate Credit Bond Markets: To BBB or Not to BBB?

Financial media and investors have been focusing on the BBB segment of the U.S. investment grade (IG) corporate bond market this year. At $3.1 trillion in market capitalization (nearly quadrupled from a decade ago), BBBs constitute nearly half of the investment grade corporate universe, according t ...

The Financial Instruments Associated With Crises

This article is a continuation of previous comments on financial crises, with two lines of discussion. The first is a bit of a primer, explaining why I and other commentators associate financial crises with a buildup of private debt. The second part discusses the main problem with associating crise ...

Behavioral Risk Is Highest In The Early Years Of A New Investment

It’s old news that managing expectations is usually the main challenge in finding success with an investment strategy. To paraphrase Pogo in the quest to earn a respectable return through time, we’ve met the enemy of prudent behavior and he is us. Less obvious is the tendency for this behaviora ...

European update – May seeking Brexit approval

May’s Brexit deal faces first test on Wednesday It looks as though we’re heading for another day in the red in equity markets, with events in Europe and the sell-off in oil markets stealing much of the headlines as investors once again take a step back from risk assets. After months of hard neg ...

DAX holds steady despite dip in German economy

The DAX index is almost unchanged in the Wednesday session, continuing the gains seen on Tuesday. Currently, the DAX is trading at 11,465, down 0.06% since the close on Tuesday. In economic news, German Preliminary GDP in the third quarter declined 0.2%, missing the estimate of -0.1%. Eurozone GDP ...