The high yield debt market is now much larger and riskier than just before the GFC. That doesn’t bode well for when the next downturn happens and investors have several options to de-risk.
Non-banks are claiming market share from banks in many forms of private debt, and it’s changing the nature of funding for many small to medium businesses.
Active managers trade more often and in larger amounts than passive managers do. Costs incurred from trading, in aggregate, can be substantial and ought to be considered in the decision to use active strategies.
A reader responded with detailed comments on the need for board members and the Chair to have relevant expertise in the company’s industry. Please join the debate.
The concept of factor investing has been around for decades and features in many portfolios. A considered and patient use of factors can enhance investment performance but not short term in all market conditions.
Australian investors with foreign currency assets must consider whether to hedge the currency exposure, but the overall context of their portfolio is relevant or losses could be magnified.
Everyone’s calling for the end of the long bull-run in equities. But we don’t know if the end is a few months or a few years away, and technological change is so vast that historical lessons need to be tempered.
It’s worth deciphering how active ‘active managers’ are, whether their outperformance is sustainable, whether they cancel each other out and whether they are true to label. Know what you’re paying for.
Many retail investors have turned to unrated or high-yield corporate bonds in recent years, but conditions have been favourable. Watch for the once-a-decade spikes in default rates.
In the 1970s, bank branches had pistols in the teller drawers and cupboards, but behind the accidents and hilarious stories lies a grim truth that is a warning to Trump’s crazy idea to arm teachers.
The best time to do a financial fire drill is when there is no fire. Planning for a major bear market will help prevent emotional upheaval and panic selling, and advisers have an important role to play with their clients.
Many investors in global portfolios overlook the currency exposure and should consider leaving hedging decisions to specialists. There is no single optimal hedging strategy as conditions vary over time.
In today’s investment markets, has value investing lost its relevance or did the recent market volatility provide a warning? Value investors need patience and a contrarian attitude, which tests the resolve in strong markets.
The Global Chief Economist of a leading asset manager has taken one question more than any other in recent months. People are both transfixed and bemused by Bitcoin, but there is a chance its value may fall to zero.