Browsing: The Global Economy & Currencies

The Global Economy & Currencies

Volatility Forecasting Across the Financial Markets

May 12th, 2020 | Filed under: Currencies, Newly Added, Risk management, The Global Economy & Currencies, Risk Management Strategies & Processes

By Mark Caslin, CEO, Alder Capital Uses of volatility forecasting in financial markets Volatility is generally accepted as the best measure of market risk and volatility forecasting is used in many different applications across the industry. These include risk management, VAR, portfolio construction and optimisation, active fund management, risk-parity investing,Read More


Lessons from CAIS 2020

Feb 11th, 2020 | Filed under: Debt Types of Private Equity, Newly Added, Institutional Investing, Socially responsible investing, Equity Types of Private Equity, Artificial Intelligence, CAIA Alternative Viewpoints, Alternative Investments in Context, ESG, Economics, Climate change, Institutional Asset Management, Hedge Funds, Macroeconomics, Private Investments, Personalities in AI, SRI and Clean Energy, Allocating to A.I., Other Topics in A.I.

John Bowman, CFA, Senior Managing Director at CAIA Association “You’re a kite dancing in a hurricane, Mr. Bond.” (Mr. White to 007, Spectre) Despite the crystal blue island water, softly rolling Caribbean tide, and perfect skies outside the hotel all week, I opened my conference wrap-up panel reminding delegates forRead More


Climate: The ‘OUR’ Between Dog and Wolf

Feb 10th, 2020 | Filed under: Newly Added, Institutional Investing, Media Coverage of Hedge Funds, Socially responsible investing, The Global Economy & Currencies, What about beta?, Alternative Investments in Context, ESG, Economics, Climate change, Institutional Asset Management, Hedge Funds, Macroeconomics, Private Investments, SRI and Clean Energy, Finance & Economics, Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association While this week’s post may harken to a certain book written by John Coates, there is a different play on the metaphor at work here, with our wheezing planet spinning in the center. Consider the wolf: powerful, aggressive, and risk-seeking. The wolf is alsoRead More


Leery Funk’s Open Letter to Sovereign Leaders

Jan 27th, 2020 | Filed under: Consultants, Retail Investing, Private Equity, Newly Added, Institutional Investing, The Global Economy & Currencies, What about beta?, Alternative Investments in Context, Endowments & Foundations, Economics, Climate change, Institutional Asset Management, Macroeconomics, Private Investments, Finance & Economics

By Bill Kelly, CAIA Association CEO In the interest of brevity, I am going to skip the salutation and get right to the heart of the matter. As my name implies, I am Leery of the lofty promises that depend on solving our long-term problems and I do remain inRead More


SASB + TCFD = Common ESG Disclosure Standards?

Jan 26th, 2020 | Filed under: Newly Added, Institutional Investing, Risk management, ESG, Climate change, The A.I. Industry, Institutional Asset Management, Risk Management Strategies & Processes, Macroeconomics, Risk Management & Operations, Other Topics in A.I.

The Sustainability Accounting Standards Board (SASB), a non-profit organization has developed industry-specific standards across environmental, social, and governance topics, working toward a consensus on the sorts of disclosures that the issuers of securities should and will make to their investors. In November 2018, SASB released complete standards for 77 industries.Read More


ESG: Why the Ratings Diverge

Jan 20th, 2020 | Filed under: Newly Added, Socially responsible investing, The Global Economy & Currencies, Business News, ESG, The A.I. Industry, SRI and Clean Energy, Allocating to A.I., Other Topics in A.I.

A recent MIT Sloan research paper looks at the degree to which various environmental, social, and governance (ESG) ratings diverge and why. The paper is the work of Florian Berg and Roberto Rigobon, both of MIT Sloan, and Julian F. Kolbel, who is affiliated with the University of Zurich’s departmentRead More


Opportunities Emerge in Emerging Markets Debt

Jan 5th, 2020 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Emerging markets, Business News, Economics, The A.I. Industry, Macroeconomics

A new year ushers in new opportunities and 2020 is no different in that respect. Emerging markets debt is one such opportunity, according to the global fixed-income team at Morgan Stanley Investment Management. In its new report, MSIM sees “attractive opportunities in countries displaying disinflationary or stable inflation dynamics andRead More


SHARE BUYBACKS OR COMPOSITE EQUITY ISSUANCE?

Jan 1st, 2020 | Filed under: CAPM / Alpha Theory, Financial Economics Theory, Newly Added, The Global Economy & Currencies, Emerging markets, The A.I. Industry, Institutional Asset Management, Finance & Economics

By Daniel Fang, CFA, CAIA, Quantitative Research, and Diana Olteanu-Veerman, CFA, Quantitative Strategy, Northern Trust Asset Management Composite Equity Issuance (Cei) Can be a Proxy for Intangible Returns Anomalies Even though factor investing is widely supported in academia and investment practice, forecasting and harvesting factor returns remains challenging for various reasons.Read More


Commodities:Waiting for a Paradigm Shift

Dec 25th, 2019 | Filed under: Commodities, CTA, Investing in Commodities, Newly Added, The Global Economy & Currencies, The A.I. Industry, Macro and Managed Futures Funds, Hedge Funds, Commodities, Finance & Economics

Ray Dalio, in reference to the current financial scene, with its long period of expansion over more than a decade has said, “This set of circumstances is unsustainable and certainly can no longer be pushed…[which] is why I believe that the world is approaching a big paradigm shift.” Dalio hasRead More


Report: Convertible Bonds Attractive for 2020

Dec 17th, 2019 | Filed under: Newly Added, Alpha Strategies, Event-Driven Hedge Funds, The Global Economy & Currencies, The A.I. Industry, Hedge Funds

A new report from Schroders looks at global convertible bonds, instruments that straddle the boundaries of debt/equity/derivatives. It tells us—in a discussion that might be of interest to the portfolio managers of relative value hedge funds—that these bonds have come back into fashion due to the higher volatility of 2019Read More


Africa: Alpha for the Bold

Dec 15th, 2019 | Filed under: Infrastructure, Newly Added, The Global Economy & Currencies, Emerging markets, Operationally Intensive Real Assets, Economics, The A.I. Industry, Frontier markets, Macroeconomics

The CFA Institute, in conjunction with the African Stock Exchanges Association (ASEA), has put together a book on the challenges and opportunities in the African capital markets. In Africa as elsewhere, fortune favors the bold. For example—and this is not an example from the ASEA and CFA Institute’s book—the EnkoRead More


Setting The Next Stage in Cryptocurrencies

Dec 1st, 2019 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Emerging Alternative Investments, Other Topics in A.I.

Telegram Open Network (TON) is a blockchain project supported by a native utility token called the Gram, created by Pavel and Nikolai Durov, who were behind the Telegram messaging app. TON now faces an existential regulatory threat. The Durovs created TON in response to what they saw as the limitsRead More


Investors Want Liquidity and They Want it Now

Nov 7th, 2019 | Filed under: Private Equity, Hedge Fund Strategies, Debt Types of Private Equity, Newly Added, Institutional Investing, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Business News, Economics, The A.I. Industry, Institutional Asset Management, Hedge Funds, Macroeconomics, Private Investments, Allocating to A.I., Finance & Economics, Other Topics in A.I.

A recent publication from Fidelity Institutional Asset Management, while looking at the money markets in the US, emphasizes that investors are looking for liquidity. The report, written by Kerry Pope and Chris Lewis, each an institutional portfolio manager with FIAM, begins with a discussion of the Federal Reserve’s September rateRead More


What if Cryptos Succeed Only After the US has Locked Itself Out?

Oct 29th, 2019 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Frontier markets, Emerging Alternative Investments, Other Topics in A.I.

Recent developments in cryptocurrency have brought new currencies and more uncertainty about them and some of the underlying investments in this brave new world. Anthony Pompliano, a founder and partner at Morgan Creek Digital, tackles these issues and more relating to the cryptocurrency universe in his blog, Off the Chain.Read More


Bitcoin Derivatives Behaving Just Like Other Underlying Assets

Oct 15th, 2019 | Filed under: Derivatives, Newly Added, The Global Economy & Currencies, Digital currencies, Other Issues in Private Investments, The A.I. Industry, Risk Management Strategies & Processes, Frontier markets, Structured Products, Other Topics in A.I.

Bitcoin derivatives act a lot like the derivatives of other asset classes. Two scholars at the University of London recently looked at bitcoin’s “volatility smiles and skews” as found in the short and long dated maturity of options traded at the Deribit Exchange in 2019. Helyette Geman and Henry Price,Read More


Of Colossal Fools and Fossil Fuels

Oct 15th, 2019 | Filed under: Social investing, Newly Added, Socially responsible investing, The Global Economy & Currencies, What about beta?, Alternative energy, Business News, Economics, Climate change, Macroeconomics, SRI and Clean Energy, Other Topics in A.I.

By Bill Kelly, CEO, CAIA Association The saying “fool me once shame on you, fool me twice shame on me” has its origins all the way back to the 1600’s when most of the carbon now in our atmosphere was “safely” encased in limestone and other rock formations within theRead More


Meet the New Crisis: Looks Like the Old Crisis

Oct 13th, 2019 | Filed under: Newly Added, The Global Economy & Currencies, Business News, Economics, The A.I. Industry, Risk Management Strategies & Processes

Last month saw an extraordinary spike in the interest rates of the repo market—the market that consists of the (very) short-term, usually the overnight, borrowing of government securities. Hedge funds, along with other institutions such as trading firms and banks, regularly hand over US Treasury bills and the like inRead More


Climate Change and Artificial Intelligence as Investment Mega-Trends

Sep 24th, 2019 | Filed under: Private Equity, Newly Added, Alpha Strategies, Venture capital, The Global Economy & Currencies, Technology, Artificial Intelligence, Other Issues in Private Investments, The A.I. Industry, Frontier markets, Emerging Alternative Investments, Private Investments, SRI and Clean Energy, Other Topics in A.I.

A report from CREATE in collaboration with BNY Mellon looks at two related megatrends in investing—climate change and artificial intelligence. It asks in each case: how is this trend perceived in terms of opportunities and risks? What are the specific investment issues involved or solutions likely to be adopted? AndRead More


The Newest New Thing? Initial Exchange Offerings

Sep 11th, 2019 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Emerging Alternative Investments, Other Topics in A.I.

Initial Exchange Offerings, that is, offerings administered by a crypto exchange, on behalf of a startup—where the startup is trying to raise funds with newly issued tokens—has developed as an alternative to an older model, the Initial Coin Offering, where participants make their contributions to a smart contract. Hirander MisraRead More


The Verdict Is In: It’s a Soft Landing for the Global Economy

Aug 1st, 2019 | Filed under: Financial Economics Theory, Newly Added, The Global Economy & Currencies, Economics, The A.I. Industry, Macroeconomics, Finance & Economics

Neuberger Berman has long pressed the investment thesis that the prolonged recovery from the depths of the Global Financial Crisis would end, when it ended, with a “soft landing.” There will be a slowing of growth, and with that an increase in volatility, but it need not involve a “hard”Read More


Equity Differential: A Factor in Currency Returns

Jul 23rd, 2019 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies, The A.I. Industry, Commodities

A recent publication by two executives of State Street Associates identifies a new factor in currency turns, which it calls the “equity differential.” In effect, it argues for the viability of a trading strategy based on this factor. The paper argues that the differential in trailing equity market performance stronglyRead More


Trade Tensions, Tariffs and European Volatility

May 30th, 2019 | Filed under: Derivatives, Newly Added, The Global Economy & Currencies, Business News, Economics, The A.I. Industry, Macroeconomics, Finance & Economics

By Mark Shore As the discussions of trade wars and tariffs persisted throughout 2018 and into 2019, it may have influenced a sense of uncertainty in the global financial and commodity markets as companies might have to rethink their supply chains and manage potential disruptions and at least in theRead More


Quants in China: Which Factors Work?

May 28th, 2019 | Filed under: Hedge Fund Strategies, Equity Hedge Funds, Newly Added, The Global Economy & Currencies, Emerging markets, The A.I. Industry, Hedge Funds

The outperformance of the size, value, and reversal factors is strong, but the momentum factor, which has performed well in the U.S., does not work in China. This is the conclusion of a new white paper published by  Neuberger Berman about quantitative investing in China A shares. It has aRead More


The Two Faces of Investing in Renewables

May 27th, 2019 | Filed under: Hedge Fund Strategies, Investing in Commodities, Equity Hedge Funds, Newly Added, Socially responsible investing, Event-Driven Hedge Funds, The Global Economy & Currencies, Emerging markets, Alternative energy, Commodities: Examples, Energy, The A.I. Industry, Frontier markets, Hedge Funds, Emerging Alternative Investments, SRI and Clean Energy, Other Topics in A.I.

Renewable energy, however defined, is widely seen as a sustainable and socially responsible (and, if the investing is done right, very profitable) addition to one’s portfolio. Indeed, such entities as the Institute for Energy Economics and Financial Analysis, an Ohio based research-and-analysis shop, exist to show that renewables are theRead More


Price Discovery in the Bitcoin Markets

Apr 30th, 2019 | Filed under: Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Frontier markets, Emerging Alternative Investments, Other Topics in A.I.

Tatja Karkkainen, a scholar on financial technology who is pursuing a PhD at the University of Glasgow, has written an illuminating paper on price discovery in the bitcoin markets. She begins with the observation that CBOE and CME introduced bitcoin futures in December 2017, “as the first institutional standard cryptocurrencyRead More


Hedge Funds and the EUR/CHF Trade

Apr 22nd, 2019 | Filed under: Hedge Fund Strategies, Currencies, Equity Hedge Funds, Newly Added, Forex, Event-Driven Hedge Funds, The Global Economy & Currencies, The A.I. Industry, Hedge Funds, Macroeconomics

Three scholars affiliated with JP Morgan Chase have written a paper on hedge fund behavior ahead of meetings of the Swiss National Bank, with the idea of shedding light on the consequences of the timing of central bank announcements more generally. They conclude that the SNB contributed to the volatilityRead More


Frame It- Painting A Picture Investors Want To See

Apr 1st, 2019 | Filed under: Newly Added, Alternative Investments in Context, Hedge Funds, Macroeconomics, Finance & Economics

By Diane Harrison Hedge fund investors and marketers seem glad to let go of 2018 and its disappointing finish, down 3.41%, a marked decline from 2017’s 11.99% gain. And yet, 2019 markets started the year with an upswing, reflecting the hope that springs eternal in capital raising. Alternatives managers willRead More


BLACK SWANS, MAJOR EVENTS & FACTOR RETURNS

Mar 24th, 2019 | Filed under: Newly Added, Risk management, The Global Economy & Currencies, Economics, The A.I. Industry, Risk Management Strategies & Processes, Macroeconomics, Finance & Economics

By Nicolas Rabener of FactorResearch INTRODUCTION Investors fear black swan events, although it can be argued that this fear is irrational. The black swan theory is a metaphor that describes a surprise event that has a major impact and is often rationalized with hindsight. A recent example would be theRead More


Bayesian Probability Theory and a Hierarchical Learning Portfolio

Mar 19th, 2019 | Filed under: Algorithmic and high-frequency trading, Financial Economics Theory, Newly Added, The Global Economy & Currencies, Business News, The A.I. Industry, Finance & Economics

Two scholars working with Bayesian probability theory recently published a fascinating discussion of market timing and portfolio efficiency. They have proposed what they call a “hierarchical ensemble learning portfolio.” Yes, that sounds rather heavy on the jargon. We’ll break it down a bit in what follows. The authors of theRead More


World Currency: Who Needs a Numeraire?

Mar 10th, 2019 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies, The A.I. Industry, Finance & Economics

One startling fact about the new book, How Global Currencies Work: Past Present and Future, is to be found in the index. One would normally expect, from a title and subtitle like that, that there would be a lot of pages enumerated at the index heading “Bretton Woods.” After all,Read More


Alpha: The Rise of the Middle Class in Emerging Markets

Feb 21st, 2019 | Filed under: Investing in Commodities, Financial Economics Theory, Newly Added, The Global Economy & Currencies, Emerging markets, The A.I. Industry, Commodities, Finance & Economics

A new paper from State Street Global Advisors takes a sociological approach to the search for alpha in emerging market nations. It contends that the “major theme for growth” in the emerging markets moving forward will be “based on the rise of the middle class and rising consumption in theseRead More


Can LIBOR Be Replaced?

Feb 12th, 2019 | Filed under: Derivatives, Newly Added, Credit Derivatives, Economics, The A.I. Industry, Macroeconomics, Structured Products, Finance & Economics

Given a long wave of scandals that lasted from 2008 until 2012, most of the derivatives industry, and most of its regulators, have agreed that the London Interbank Offered rate [Libor] ought to be replaced by a more tamper-resistant mechanism. Surely there must be an index that will measure theRead More


How Public Pension Funds are Subsidizing Infrastructure

Jan 29th, 2019 | Filed under: Infrastructure, Newly Added, Institutional Investing, Socially responsible investing, Alternative energy, Operationally Intensive Real Assets, The A.I. Industry, Institutional Asset Management, Frontier markets, Real Assets, SRI and Clean Energy

Public pension funds in the United States invest in infrastructure. Unfortunately, they aren’t very good at it. A recent working paper of the NBER concludes, indeed, that public pensions are so bad at such investments that they—and thus either the public or its retirees or both—are unwittingly subsidizing infrastructure projects.Read More


An Emerging Market Nation Defaults: A Case Study

Jan 24th, 2019 | Filed under: Newly Added, Emerging markets, The A.I. Industry, Finance & Economics

A new book by Hassan Malik may serve as a caution for alternative investors operating in the emerging markets, in the form of a case study about the politics of default. Malik is an emerging markets strategist at Ned Davis Research in London. His new book, Bankers and Bolsheviks, beganRead More


Nick Pollard: The View from Mumbai

Jan 21st, 2019 | Filed under: Newly Added, The Global Economy & Currencies, Emerging markets, Economics, The A.I. Industry, Hedge Funds, Macroeconomics

On Jan. 11,  the CFA Society India hosted the 9th Annual India Investment Conference in Mumbai. CAIA was a platinum sponsor of this event.  The theme of this year’s IIC was “investing insights for uncertain times.” Nick Pollard, Managing Director, Asia Pacific at CFA Institute, kicked things off with aRead More


CORPORATE DEBT IN THE CHINESE STOCK MARKET

Jan 17th, 2019 | Filed under: Newly Added, The Global Economy & Currencies, Economics, The A.I. Industry, Frontier markets, Macroeconomics, Finance & Economics

By Nicolas Rabener, CAIA, Factor Research Summary: China exhibits the world’s highest corporate debt as % of GDP However, Chinese stocks are not significantly more levered than U.S. stocks Asset and debt growth has stalled in 2018, likely indicating an economic slowdown INTRODUCTION The McKinsey Global Institute published an influentialRead More


How Bayesians Solve the Markowitz Problem

Jan 13th, 2019 | Filed under: CAPM / Alpha Theory, Financial Economics Theory, Newly Added, Behavioral finance, The Global Economy & Currencies, Macroeconomics, Finance & Economics

Understanding of the “Markowitz problem” has changed in the 60+ years since Harry Markowitz’ publication of an article in the Journal of Finance that outlined the basics of modern portfolio theory. The problem is that portfolio theory requires an investor to estimate risk, return, and correlation from market data, meaningRead More


‘Great Moderation?’ Forget about it, says new Fed working paper

Jan 10th, 2019 | Filed under: Financial Economics Theory, Newly Added, The Global Economy & Currencies, Economics, The A.I. Industry, Macroeconomics, Finance & Economics

A new working paper from the Federal Reserve Bank of Chicago looks at the real risk-free interest rate over the last 30 years, where it has been trending, and why that trend hasn’t had the consequences one might intuitively have predicted. The paper, Accounting for Macro-Finance Trends, is the workRead More


Top 5 Alpha Stories of 2018

Dec 30th, 2018 | Filed under: Private Equity, Hedge Fund Strategies, Newly Added, Regulatory Environment, Event-Driven Hedge Funds, Equity Types of Private Equity, The Global Economy & Currencies, Digital currencies, Other Issues in Private Investments, The A.I. Industry, Hedge Funds, Emerging Alternative Investments, Private Investments

Five stories stand out as the dominant stories for and about pursuers of alpha in the year just passed. There is nothing arbitrary about the list below. We admit, though, that the order in which we present them is arbitrary: that is, it is not a ranking, and it isRead More


The Wright Stuff

Dec 17th, 2018 | Filed under: Newly Added, The Global Economy & Currencies, What about beta?, Alternative Investments in Context, Economics, Macroeconomics, Allocating to A.I., Finance & Economics

By Bill Kelly, CEO, CAIA Association One hundred and fifteen years ago today two Wrights tried to make it right when it came time to ponder the prospect of flying the friendly skies. On that day in an open field in a place called Kill Devil Hills, the first recorded airplane flight took off and safelyRead More


McKinsey on Asia’s Asset Managers

Dec 16th, 2018 | Filed under: Industry Size & Managers, Newly Added, Asset Managers, Regulatory, Regulatory Environment, The Global Economy & Currencies, Emerging markets, Economics, The A.I. Industry, Allocating to A.I.

Assets under management for Asia’s managers have ballooned in the last 10 years, with an increase on average of 9% annually. Performance has been such as to encourage inflow. A recent study by McKinsey suggests that the “good times” will “keep rolling.” But it also cautions that the opportunities inRead More


FACTOR INVESTING MADE IN CHINA Harvesting Factor Returns in the Middle Kingdom

Dec 13th, 2018 | Filed under: Newly Added, The Global Economy & Currencies, Economics, The A.I. Industry, Macroeconomics, Finance & Economics

By Nicolas Rabener, CAIA, Factor Research Summary: Common equity factors generated attractive risk-adjusted returns in the Chinese stock market Factor performance in China often mirrors global factor performance Indicates common factor drivers that permeate even emerging and isolated markets INTRODUCTION Economic news like changes in GDP growth are frequently usedRead More


ISSA Reports on the Crypto-Infrastructure

Dec 12th, 2018 | Filed under: Currencies, Newly Added, The Global Economy & Currencies, Digital currencies, The A.I. Industry, Frontier markets, Emerging Alternative Investments, Other Topics in A.I.

This has been a terrible year for cryptocurrencies. Bitcoin, the flagship for the asset class, peaked in the middle of December 2017 at a value of above $17,000. By the end of January this year, it was below $10,000. By September BTC had settled into a price range of $6,500.Read More


A Move from Otherness to Better Global Governance 

Dec 10th, 2018 | Filed under: Newly Added, The Global Economy & Currencies, What about beta?, Economics, Macroeconomics

By Bill Kelly, CEO, CAIA Association The resolution season will soon be upon us. Many will aspire to eat less, exercise more, be better partners or parents, or maybe even sit for the March 2019 CAIA Exam. Resolve doesn’t always make it across the finish line though, even with the very best ofRead More


Distressed Debt: What Happens When the Tree Stops Growing?

Dec 9th, 2018 | Filed under: Hedge Fund Strategies, Newly Added, Event-Driven Hedge Funds, The Global Economy & Currencies, Economics, The A.I. Industry, Macro and Managed Futures Funds, Hedge Funds, Finance & Economics

Distressed debt markets have four themes emerging, according to a new paper issued by the Wells Fargo Investment Institute They are: the consequences of central bank tightenings around the globe; the elevation of debt levels, also something happening globally; the regulatory pressure over non-conforming loans (especially in Europe); and theRead More


Jeff Diehl: The View from SuperReturn Japan, Part I

Dec 4th, 2018 | Filed under: Private Equity, Debt Types of Private Equity, Newly Added, Venture capital, Equity Types of Private Equity, The Global Economy & Currencies, Other Issues in Private Investments, Economics, The A.I. Industry, Frontier markets, Macroeconomics, Private Investments, Finance & Economics

On Wednesday, December 5, in Tokyo, Japan, the SuperReturn Japan 2018 event convenes. CAIA is a sponsor of this event. Jeff Diehl, managing partner at Adams Street Partners, a multi-national investment manager with more than $35 billion in assets under management, is attending. He will participate in a panel WednesdayRead More


Steamrollers, Geniuses and Market Crashes

Nov 27th, 2018 | Filed under: Hedge Fund Operations and Risk Management, Newly Added, Risk management, Operations, The Global Economy & Currencies, The A.I. Industry, Risk Management Strategies & Processes, Hedge Funds, Relative Value Hedge Funds, Risk Management & Operations, Finance & Economics

McGraw Hill Education has brought out a new book by Bruce I. Jacobs, of Jacobs Levy Equity Management. The book, Too Smart for our Own Good, concerns “ingenious investment strategies, illusions of safety, and market crashes.” The thesis is that the financial crises of recent decades are the consequence ofRead More


Picnicking and Nitpicking  

Nov 19th, 2018 | Filed under: Newly Added, The Global Economy & Currencies, What about beta?, Economics, Finance & Economics

By Bill Kelly, CEO, CAIA Association What is a complex transaction without a battery of lawyers to paper it up. These legal minds are an integral part of most transactions and their presence is mostly felt at the time of deal creation and, maybe even more so, when things go offRead More


The Trinity Of Errors In Financial Models: An Introductory Analysis

Oct 24th, 2018 | Filed under: Financial Economics Theory, Newly Added, The A.I. Industry, Macroeconomics, Finance & Economics

By Deepak Kanungo, Founder and CEO of Hedged Capital LLC In this introductory article, we explore three types of errors inherent in all financial models. We examine these errors using a simple probabilistic model that can be used for predicting the federal funds rate, an interest rate of seminal importanceRead More


 Shariah Finance, Volatility, Clientele Effects

Oct 23rd, 2018 | Filed under: Financial Economics Theory, Newly Added, The Global Economy & Currencies, Emerging markets, The A.I. Industry, Frontier markets, Finance & Economics

Two recent scholarly papers take distinctive looks at the sukuk market in Malaysia. Accordingly, each contributes to the ongoing discussions and evaluations of the place of Islamic finance within the broader global (and alpha-seeking) picture. Sukuk are bond-like instruments structured to pay profit, not interest, that are sold chiefly toRead More