Archive | Risk Management

diversification

Preparing for the ups-and-downs of 2017

When markets deliver lower returns, investors need to save more, learn about investments and stay the course to achieve their retirement goals. Diversification is an effective way to weather uncertain times.

NAB Subordinated Notes

A study of NAB’s Subordinated Notes 2

Subordinated debt issues are a less risky investment than capital notes and hybrids, but each transaction is different and not riskless. The current issue of NAB Subordinated Notes is just one example.

financial services

Five ways to filter the fintech hype

Almost every day, there is a new and exciting fintech announcement of the next big thing. Some checks improve the chances of finding the financial services winners.

documented

Caveat lender, and consistency in law

When combining family and financial matters, what starts out well can turn ugly. Not only should such dealings be properly documented, but also conducted in strict accordance with those documents.

px-crane-construction-gripper

Populism and the risks in regulated assets

Infrastructure assets are viewed as ‘bond proxies’ because they are supposed to have predictable cash flows, but investors should delve deeper into the regulatory risks, especially in a post-Brexit, post-Trump world.

volatility

Market serves up some savage volatility

We are seeing rapid one-day movements in some large stocks of 10% to 20%, especially those that were ‘priced for perfection’. What is causing this, and does it present a threat or an opportunity in a portfolio?

volatility

The other problem with volatility

There are many ways to hedge against volatility, but often at a cost to the overall return of the portfolio. At what point is a smooth journey worth the impact on the destination?

modern investor

Portrait of a modern investor

The modern investor has access to many products but the level of financial literacy struggles to keep pace leading to confusion and conflicted goals. This study shows the types of conversations investors should have with advisers.

Cane toad

Hybrids: the good, the bad and the ugly

Almost every hybrid has a unique structure, and some of the conversion terms, especially following a ‘loss absorption’ event, are as ugly as a cane toad. Billions have been issued recently as investors search for income.

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