There is nothing original in this post. However, with a number of mutual funds closing their doors over the last few days, I thought it might be worthwhile discussing why an ETF structure should be more resilient than the standard mutual fund. ETF’s and mutual funds are both derivative securities. Their intrinsic value depends on […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-12-15 05:04:112018-05-14 05:04:42The ETF’s subtle advantage over a mutual fund
Most people would have missed the violent reaction of the European currency and bond markets to Mario Draghi’s discussion of the ECB’s policy statement last Thursday. I say ‘violent’ since the currency and bond markets registered movements of +1.5 and -3% respectively, during 15 minutes of trading post announcement. Mario Draghi apparently disappointed the investment […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-12-09 05:06:342018-05-14 05:07:37Not panicking is too hard to do
Macro-Prudential controls on Loan-to-Value and Debt-Service-to-Income ratios are the hot topic in banking supervision at the moment. The IMF, for instance, has been pushing these policies as a means for reigning in housing markets. The premise is that banks are incapable of assessing credit risk on a deal-by-deal basis, and therefore it falls to the […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-11-30 05:07:422018-05-14 05:08:24Macro Prudential regulation: One bird in the bush is worth more than 10 in the hand
Retail investors really get the thin end of the investment wedge. In general, they buy last year’s best performing asset class which then turns sour, or they ignore this year’s ‘dog’ investment which subsequently has its ‘day’. In my experience, the only time I have seen the retail investor outmanoeuvre the institutional professionals was when […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-11-19 05:09:052018-05-14 05:09:38Investing in Retail Land: trends we like, trends we hate
The Chicago commodity trader Michael Coscia was convicted of ‘spoofing’ 2 days ago. Spoofing is where a trader submits an order with the intention of canceling it before transacting. The idea is to send a false signal of market demand or supply to trick other traders into believing an imbalance is present. Are traders that […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-11-06 05:09:412018-05-14 05:10:09The best way to spoof is not to spoof at all
Which statement is correct? A) Increases in employment leads to increase demand for consumption which in turn forces up prices and inflation. B) Increases in employment leads to increased output which in turn forces down prices and inflation. C) There is no relation between employment and inflation Why do I raise this age-old question? Just […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-10-14 06:04:592018-05-14 06:05:23The A B C of monetary policy
Oh dear, what a pickle Fed President Janet Yellen has got herself into! Just a day after she announces her commitment to a 2015 rate hike, the September US Jobs report reveals a Labour market collapse across the board. If the Jobs data are re-conffirmed next month, then a rate hike is likely to be […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-10-05 06:06:002018-05-14 06:06:32Negative US interest rates: the right policy for the wrong reasons
Today’s post reports some research results that I am quite excited about. I must apologise that the research is motivated to help our potential investors better understand our investment process, so therefore it is an advertisement of sorts. Advertisements aside, you should find the results quite interesting. Those of you who are familiar with our […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-09-23 06:06:382018-05-14 06:09:35Converting the annual rebalancing skeptics with a statistical Petri dish
A succession of pre-election opinion polls this year gave David Cameron’s Conservative Party little chance of forming a minority government, let alone being able to rule with a majority. Yet an ‘exit poll’ published 1 minute after the polling stations closed, comprised of 1200 voters, indicated a Conservative victory with a solid swing and a […]
Term structure theory can be complex to understand, but there are some simple restrictions that must be obeyed. One simple fact is that a 10 year coupon bond is made up of a lot of little zero-coupon bonds with varying maturities from a few months all the way out to 10 years. It must be […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2015-09-07 06:52:452018-05-14 06:54:52Whatever the Fed decides to do, it hasn’t got much to do with interest rates…PLUS the latest release from DJ Dr Fish
The ETF’s subtle advantage over a mutual fund
There is nothing original in this post. However, with a number of mutual funds closing their doors over the last few days, I thought it might be worthwhile discussing why an ETF structure should be more resilient than the standard mutual fund. ETF’s and mutual funds are both derivative securities. Their intrinsic value depends on […]
Not panicking is too hard to do
Most people would have missed the violent reaction of the European currency and bond markets to Mario Draghi’s discussion of the ECB’s policy statement last Thursday. I say ‘violent’ since the currency and bond markets registered movements of +1.5 and -3% respectively, during 15 minutes of trading post announcement. Mario Draghi apparently disappointed the investment […]
Macro Prudential regulation: One bird in the bush is worth more than 10 in the hand
Macro-Prudential controls on Loan-to-Value and Debt-Service-to-Income ratios are the hot topic in banking supervision at the moment. The IMF, for instance, has been pushing these policies as a means for reigning in housing markets. The premise is that banks are incapable of assessing credit risk on a deal-by-deal basis, and therefore it falls to the […]
Investing in Retail Land: trends we like, trends we hate
Retail investors really get the thin end of the investment wedge. In general, they buy last year’s best performing asset class which then turns sour, or they ignore this year’s ‘dog’ investment which subsequently has its ‘day’. In my experience, the only time I have seen the retail investor outmanoeuvre the institutional professionals was when […]
The best way to spoof is not to spoof at all
The Chicago commodity trader Michael Coscia was convicted of ‘spoofing’ 2 days ago. Spoofing is where a trader submits an order with the intention of canceling it before transacting. The idea is to send a false signal of market demand or supply to trick other traders into believing an imbalance is present. Are traders that […]
The A B C of monetary policy
Which statement is correct? A) Increases in employment leads to increase demand for consumption which in turn forces up prices and inflation. B) Increases in employment leads to increased output which in turn forces down prices and inflation. C) There is no relation between employment and inflation Why do I raise this age-old question? Just […]
Negative US interest rates: the right policy for the wrong reasons
Oh dear, what a pickle Fed President Janet Yellen has got herself into! Just a day after she announces her commitment to a 2015 rate hike, the September US Jobs report reveals a Labour market collapse across the board. If the Jobs data are re-conffirmed next month, then a rate hike is likely to be […]
Converting the annual rebalancing skeptics with a statistical Petri dish
Today’s post reports some research results that I am quite excited about. I must apologise that the research is motivated to help our potential investors better understand our investment process, so therefore it is an advertisement of sorts. Advertisements aside, you should find the results quite interesting. Those of you who are familiar with our […]
First Degree Election Special: The SIngapore Swing
A succession of pre-election opinion polls this year gave David Cameron’s Conservative Party little chance of forming a minority government, let alone being able to rule with a majority. Yet an ‘exit poll’ published 1 minute after the polling stations closed, comprised of 1200 voters, indicated a Conservative victory with a solid swing and a […]
Whatever the Fed decides to do, it hasn’t got much to do with interest rates…PLUS the latest release from DJ Dr Fish
Term structure theory can be complex to understand, but there are some simple restrictions that must be obeyed. One simple fact is that a 10 year coupon bond is made up of a lot of little zero-coupon bonds with varying maturities from a few months all the way out to 10 years. It must be […]