Practical analysis for investment professionals

interest rates


Weekend Reads for Investors: Highly Caffeinated Edition

Jason Voss, CFA, provides his choices for Weekend Reads for Investors. This edition features surprising facts about coffee consumption, global choke points in the food supply, graphics showing how cryptocurrencies are likely to affect finance, and more.

Tilting Portfolios to Leverage Macro Trends and Political Winds

Back in the 1980s, “monetary policy was a great way to stimulate the economy,” Jack Ablin, CFA, said. Not anymore.

Edward Altman: The Benign Credit Cycle Is in Extra Innings

Edward Altman says the benign credit cycle is in “extra innings,” but the metaphorical relief pitchers — central bankers — are running out of gas. Though most indicators point towards the end of the benign cycle, Altman cannot predict when the stress cycle will begin.

The Outlook for Fixed Income: Stagnant Prices, Tighter Money

Interest rates are nearing a lower bound, David Schawel, CFA, tells Will Ortel during a recent Take 15 interview. “Most likely we’re not going to be in a 30-year bull market for interest rates falling again,” he said. So what does this mean for fixed-income investors?

Weekend Reads: No Alternatives and Things That Really Matter

The search for alternatives, things that really matter in the world, and a brief foray into the active vs. passive management debate are the topics included in this week's edition of Weekend Reads.

Reduced Viability? Banks, Insurance Companies, and Low Interest Rates

In the current low-rate environment, there is reason to wonder about the viability of banks, insurance companies, and indeed any institution that generally depends on the spread between long- and short-dated liabilities for its profits, says David Schawel, CFA.

Why Savers Might Miss Out on the Benefits of Higher Interest Rates

Do higher interest rates actually lead to higher returns on savings? Research shows a 1% increase in interest rates by the US Federal Reserve equals a 0.34% increase in the rates paid by banks on savings deposits. Why do savers fail to capture the benefits of higher interest rates?

Weekend Reads from India: Interest Rates and Munger’s Take

In the latest Weekend Reads compilation, Shreenivas Kunte, CFA, curates readings on the Berkshire Hathaway annual meeting, interest rates, the economic outlook in China and India, and more.

The C-Suite Speaks: Hotel California

If the Fed doesn't feel comfortable raising rates above 0.25% in the current conditions, will we ever leave this low rate environment?

Dumb Alpha: Don’t Get Carry Traded Away

Carry trades profit from investor herding just like momentum strategies. As more and more investors pour money into high-interest currencies and borrow on low-interest currencies, the demand for the former rises. This herding behavior can continue for quite some time, but it comes to a halt when investors are no longer willing to invest in high-interest currencies.



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