Practical analysis for investment professionals

central banking

Whither the Euro? Seeking Resolutions for the Eurozone

Unsurprisingly, a major theme of the Fifth Annual CFA Institute European Investment Conference was the prospect for the euro. While speakers put forward different arguments, ultimately it seems the resolution must come from choices made about the political economy.

Investing in Bonds Will Be Nothing Like the Past 20 Years, Says BlackRock Fixed-Income CIO Rick Rieder

At the recent CFA Institute Fixed-Income Management Conference, BlackRock Chief Investment Officer Rick Rieder contended that the fixed-income market is undergoing structural changes in the wake of the Great Recession that have not been present for at least 20 years. Among the major elements of this shift: the long-term continuation of artificially low interest rates and a shortening of investment time horizons.

Live Webcast: Policy, Politics, and Bond Markets

James Grant, founding general partner of Nippon Partners, will discuss expectations for 2013 and the long-run effects of central bank policies on bond markets, among other topics.

Poll: Is the Objection to Using the ESM’s Bailout Money to Purchase Bad Loans Appropriate?

Earlier this week, we asked readers, “Is Germany, Finland, and the Netherlands’ objection to using the European Stability Mechanism’s bailout money to purchase existing bad loans appropriate?” More than 70% said these nations’ objections were appropriate.

In Aftermath of QE3 and Fed’s Easy Money Policies, It’s Savers Who Suffer

The slightest rise in rates here in the US could devastate federal, state, and municipal budgets nationwide. All of which goes a long way to explaining the Fed’s brute determination to keep interest rates miniscule.

Poll: What Do You Think Will Be the Most Likely Impact of QE3?

In a poll conducted earlier this week in the CFA Institute Financial NewsBrief, we asked subscribers what they thought would be the most likely impact of QE3.

What do you think will… READ MORE ›

Book Review: Financing Failure: A Century of Bailouts

In this comprehensive historical analysis of several decades’ worth of decisions to bail out troubled banking firms, the author suggests that the 2008–09 interventions were ill conceived and inadequately justified. He argues that misguided government policies were largely responsible for the financial crises that necessitated such bailouts.

Why the Current Account Deficit Helps Explain the Economics of QE3

Yesterday, U.S. Federal Reserve Chairman Ben Bernanke removed all doubt about whether or not the Fed would proceed with QE3. What will be the impact? A careful study of the long-running U.S. current account deficit provides some answers.

Pushing on a String

Federal Reserve policy has substantial effects that are important for investors to understand, and future policy direction may be different than expected. 

Being riskless (by that I mean holding government securities) simply doesn’t pay anymore, and markets are starting to… READ MORE ›

Against Quantitative Easing by the European Central Bank

According to Jerry H. Tempelman, CFA, a more permanent solution to the European sovereign debt crisis will have to come not from the ECB but from the governments and citizens of its constituent countries.

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