The Psychology Behind Low Yields
Marketwatch had an article over the weekend about the recent success of the junk bond ETFs and some of the reasons why investors have been so keen on this space. Of more interest to me was a quote in the article from Doug Cliggott from Credit Suisse th...
More Bodie
There was one more point from the Zvi Bodie interview mentioned yesterday that I wanted to discuss. He feels that too many "analysts" only consider one scenario. In making his point he uses the example of the current debate of whether deflation really ...
Interview With Zvi Bodie
Advisor Perspectives posted a lengthy interview with economics professor Zvi Bodie from Boston University. He has co-authored text books and has made interesting comments about asset allocation over the years. The current interview has several useful t...
Deflation, Is It Coming?
Yesterday was kind of an odd day around the ole blogosphere as Market Folly and ETFdatabase each ran almost the same post about how to invest in a deflationary environment. I did not see mention of a cross posting so I just chalk it up to coincidence.E...
Elusive Low Correlations
Two items today from yesterday's FT Alphaville.One was part of an ongoing dialogue about correlation having increased lately and the extent to which high frequency trading (HFT) and the popularity of ETFs might be contributing to the problem. Concerns ...
Damn, Three Two Times
On Monday the S&P 500 closed above it's 200 DMA so I was prepared to sell our current inverse ETF position which is the ProShares Ultra Short Dow 30 (DXD) on Tuesday near the close. Typically I wait for a second straight day, which would have been ...
Should Individuals Try To Hedge Tail Risk?
Felix Salmon had a post up the other day asking if it is possible to hedge tail risk. For purposes of this post tail risk refers to very extreme outlying events that cause meaningful disruptions in capital markets. Felix also provided a link to this ar...
True Diversification
James Picerno had an interesting post about hedge funds with the following quote really catching my eye;Hedge funds are supposed to be the ultimate diversification tool. The idea is that the returns post low/negative correlation with broad measures of ...
Victor Niederhoffer
An interview of Victor Niederhoffer on Slate made the rounds yesterday (I found it through FT Alphaville). It was about the two huge blow ups that Niederhoffer endured, what went wrong, what he learned and his mind set now.I've read a few other things ...
The phantom securities which haunt the BoE, quantified
In its latest Quarterly Bulletin, the Bank of England outlines in excruciating detail its risk management procedure for all the collateral it accepts as part of its liquidity operations,...
Putting Risk In Proper Perspective
The other day on my way home from fire training I saw some smoke coming up from a neighbor's property. He was burning various logs of different sizes to clean up his property. This sort of cleaning up is not uncommon but depending on the weather condit...
Aon Survey: Interest Rates Are the Greatest Pension Risk
Filed under: Economic Data
Interest rates are the top concern among global financial services firms in the pension risk management business.
According to a new survey by Aon's (AON) human capital arm, 58% of the big players in the pension risk management space...
