Gary P. Brinson, CFA, discusses the impact that the Federal Reserve’s prolonged low-rate environment is having on plan sponsors. He argues that we are observing Hayek’s fatal conceit in which a handful of people in the government imagine they can redesign markets and do better than markets themselves can.
This episode of the Take 15 Series was originally released on 15 June 2012.
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Ron Rimkus, CFA, was Director of Economics & Alternative Assets at CFA Institute, where he wrote about economics, monetary policy, currencies, global macro, behavioral finance, fixed income and alternative investments, such as gold and bitcoin (among other things). Previously, he served as SVP and Director of Large-cap Equity Products for BB&T Asset Management, where he led a team of research analysts, 300 regional portfolio managers, client service specialists, and marketing staff. He also served as a Senior Vice President and Lead Portfolio Manager of large-cap equity products at Mesirow Financial. Rimkus earned a BA degree in economics from Brown University and his MBA from the Anderson School of Management at UCLA. Topical Expertise:Alternative Investments · Economics
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The European Commission is looking to make technical changes next year to parts of the revised Markets in Financial Instruments Directive in response to persistent criticism from market participants. Financial Times (subscription required) (13 Nov.)
The New York Legislature could remove an obstacle to transition of derivatives cash contracts from Libor to another interest-rate benchmark, but the Federal Reserve-backed Alternative Reference Rates Committee expects election-year delays to prevent action in the near future. "It's unlikely we'll have certainty on this for quite some time," says Brian Grabenstein of Wells Fargo, which is an ARRC member bank. MLex (subscription required) (12 Nov.)
US consumer prices increased the most since March last month, sending the consumer price index up 0.4%, according to the Labor Department. Health care costs had the biggest increase in more than three years, and recreation costs climbed the most since 1996. Reuters (13 Nov.)
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