Conference Proceedings Quarterly
Michael Pond, CFA, delivered an interesting primer on inflation-linked debt at the recent CFA Institute Fixed-Income Management Conference. So what are inflation-linked bonds? They are most typically debts issued by sovereign nations whose nominal interest rate is adjusted, either up or down, by an inflation measure.
Some familiar leadership competencies include decisiveness, confidence, flexibility, intelligence, perseverance, and respect. But executive coach and author Julie Jansen notes a few others that deserve closer examination.
“Fear has defined my working life,” Lucy Kellaway says. But it was not the fear that she inspired in others or the fear that others attempted to instill in her. She was driven by a self-imposed fear of “being found out,” a fear that she would fail to meet expectations. That fear was her greatest weapon.
Fresh off her ouster as CEO of Citi Global Wealth Management, Sallie Krawcheck spent some time studying the causes of the Great Recession. An epiphany led her to what she believes was the prime culprit: groupthink. So is there a cure for groupthink that could forestall another financial crisis? Krawcheck thinks there is.
“What drives long-term energy demand growth? People and income,” Jennifer Stevenson explained.
“Typically when the default rate is 1% or more above the Moody’s forecast, it is a good time to own distressed bonds," Martin Fridson, CFA, said. "Similarly, if the bonds are priced 1% or more below Moody’s, then the distressed bonds are priced too tightly (i.e., a signal to sell).”
Leah Zell, CFA, discusses her firm's approach to fundamental analysis and why identifying companies with good governance is imperative for managing risks.
Edward Altman says the benign credit cycle is in “extra innings,” but the metaphorical relief pitchers — central bankers — are running out of gas.
“Responsible investment” has nothing to do with nebulous moral considerations — it’s all about generating sustainable financial returns, says Sandra Carlisle of Newton Investment Management. Understanding three different levels of a company's profile can help to identify and avoid bad actors, bridging the gap between values-based investing and prudent fiduciary duty.
Rahki Kumar believes it is important for long-term investors to encourage long-term strategy at companies and for all investors to recognize the role they play in markets.