Practical analysis for investment professionals


Rising Illiquidity in Bond Markets: What Does It Mean for ETFs?

Post-financial crisis, the volume of outstanding bonds has grown. At the same time, however, consolidation among banks and broker/dealers has cut the number of market makers, and new regulations have reduced the capital these companies can commit to fixed-income inventories.

Over-Rated: Do Fund Asset Classifications Tell the Whole Liquidity Story?

Investors and advisers need to broaden and deepen their levels of analysis to get a better handle on liquidity risks. They may be drawn to the apparent certainty of putting funds into a small number of boxes, buckets, or categories, but this may prove to be a false comfort.

The Effects of FX!

Ronald G. Layard-Liesching outlined a startling and complex thesis at the recent 2015 CFA Institute Fixed-Income Management Conference in Boston.

What Is the Relevant Time Period for Your Investment Portfolio?

In our job as professional investors for others as well as personal stewards for ourselves and our families, we try to do something today that will have a future beneficial result. This is easier said than done. To accomplish our goals we need to answer two basic questions: What Are We Doing? Which Future?

Nobel Laureate Robert Engle on VaR, Systemic Risk, and Liquidity

Nobel laureate Robert Engle discusses the development of the ARCH model, the global financial crisis, systemic risk, and forecasting liquidity with ARCH models.

Fraser Howie on China: Expect Nasty Shocks to Bank Balance Sheets

In the second installment in our series of interviews with experts on China, Fraser Howie explains why he thinks recent actions by the PCOB will fall far short of resolving the country's banking problems.

Michael Pettis on China: Too Much Credit Not Just a Problem for Shadow Banking System

Recent attempts by the People’s Bank of China to limit shadow banking have sent commercial lending rates soaring and Chinese stocks into bear market territory. In this first installment in a series of interviews featuring China experts, we ask Michael Pettis for his analysis on recent events.

James Montier: More Realistic Financial Models Incorporating Illiquidity and Leverage Are Needed

Financial theorists, policymakers, and practitioners created the financial crisis with “bad models, bad policies, bad incentives, and bad behavior,” said James Montier of GMO UK Ltd.

Take 15: Is Liquidity the Missing Equity Investment Style?

Roger G. Ibbotson argues that a liquidity strategy meets the criteria for a legitimate and sustainable style with clear performance advantages.

By continuing to use the site, you agree to the use of cookies. more information

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.