Markets are usually not systemic. Instead, from the bird’s-eye perspective of "Capitalism," many businesses are "opportunities" in the same way that it feels good to hit yourself in the head with a hammer: It's much better once you stop.
Markets are useful but imperfect, says Jason Voss, CFA. One imperfection is that they assume fungibility. Assuming that a dollar spent on one thing is equivalent to a dollar spent on something else has serious consequences for investors.
In a sweeping survey of the financial crises that shook East Asia and other developing countries, the author explores the compatibility of emerging market economies with inherently volatile global financial markets.
The book is a collection of 15 papers on the current challenges in sovereign debt restructuring and alternatives for resolving them. For investment analysts, it is a valuable resource of systematic analysis, insight, and data on an increasingly important topic.
Lidia Bolla, CFA, takes the basic model of factor exposure and applies it to the concept of fundamental indexing in the bond market in her new article, "Fundamental Indexing in the Global Bond Markets: The Risk Exposure Explains It All." She discusses her findings in an interview with Ron Rimkus, CFA.
Markets assume a context entirely out of view of their participants, which can have deleterious effects for both suppliers and demanders, Jason Voss, CFA, observes in the latest installment of his Where Markets Fail series.
Tucked away in the early days of the financial crisis, the auction rate securities (ARS) debacle has been largely relegated to the dim recesses of memory. However, investors and advisers should not downplay its significance.
Subscribe to Enterprising Investor and receive email notifications when new content is posted.
The European Commission is working to ensure that resolution authorities assessing failing financial institutions can hire more than one valuation agency to avoid disputes. Multiple valuations are expected to help authorities determine "with absolute certainty" whether they must intervene, said Emiliano Tornese of the European Commission. MLex (subscription required) (19 Oct.)
The Senate has voted 51-49 to approve a budget blueprint for fiscal 2018 that opens the door to adoption of tax cuts proposed by President Donald Trump without Democratic votes. The measure needs reconciliation with a version passed by the House before it can be submitted for Trump's signature. Reuters (19 Oct.)
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.