Investors who are betting on the “great rotation” from fixed income markets into equity markets may well be disappointed. As bond yields fell across the global markets, a consensus grew that not only would equity returns exceed bond returns over the next few years, but bond returns would actually be negative. This view encouraged investors […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-12-12 05:53:042018-05-21 05:53:30Will the “Great Rotation” Trade Succumb to the “Great Correlation”?
Satoshi Nakamoto is credited with the creation of ‘Bitcoin’. Bitcoin is a digital currency designed to facilitate transactions while ensuring stable prices. It is modelled on the gold standard that permitted holders of paper money to convert into gold at a fixed price, thus ensuring that the supply of money was fixed in line with […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-11-20 05:53:322018-05-21 05:53:57Mining for Bitcoin: Another Japanese Triumph For Elegance Over Logic
India is a fascinating place. There are so many contrasts and contradictions in the culture that it is impossible to understand in a lifetime. Government and policy practice share these traits. A few weeks ago I blogged that the declines in the Indian Rupee and Indonesian Rupiah could have been completely avoided had the Central […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-11-13 05:54:002018-05-21 05:54:26With the Rupee Collapsing the Reserve Bank of India Decides to… Sell?
Last week I presented my views on Quantitative Easing and Tapering at the AsiaMoney Borrowers and Investors’ conference in Singapore. Basically, I pointed out that almost all the monetary injection that had been provided by the US Federal Reserve had found its way back to the Fed because consumers and investors did not want to […]
“Give us your money and come back in 20 years” is the simple description for private equity investments. PE funds are basically “closed-end funds” that gather cash to invest in a number of private ventures. Once the cash is raised, the investment period can be three to five years or longer, after which the investments […]
China and Japan are the US government’s largest single creditors. As the two largest owners of foreign reserves in the world, they have consciously invested the majority of their assets in US Treasuries. The reason they chose the US Treasury market is because it fits their strict investment guidelines as determined by their respective Ministries […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-10-08 05:55:282018-05-21 05:55:56Why China and Japan are Panicking Over a US Default
I first met Larry Summers in a corridor at the University of Rochester. Famished and between sessions at a conference, Mr Summers had just deposited two quarters into a vending machine. His selected snack got stuck in the machine. Angered, he pounded the machine with his fists, and when that failed to dislodge the item, […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-09-16 05:55:592018-05-21 05:56:27Did Larry Summers Kick the Political Vending Machine?
The most significant development in currency markets over the last 15 years has been the enormous accumulation of foreign reserves by emerging market economies. The Central Banks of China, India, Malaysia, Korea, Taiwan, Indonesia, the Middle East, Brazil and others have elected to stand in the market and purchase foreign currency in the face of […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-09-11 05:56:302018-05-21 05:56:53Are the ‘Swing Consumers’ in Emerging Market Currencies the Cause of Crisis?
The financial press reacted with astonishment and disbelief to Krishnamurthy and Vissing-Jorgensen’s paper (Krish and Viss) at the recent Federal Reserve conference at Jackson Hole. The two authors simply analysed the “announcement effect” on Treasury, corporate and mortgage bond yields around the announcement date for QE1 and QE2. Exactly why the financial press is so […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-08-27 05:58:492018-05-21 05:59:15What Did Krish and Viss Say at Jackson Hole?
The Federal Reserve released their latest minutes from the FOMC meeting last night. The consensus was that the Fed will start to reduce their asset market purchases gradually when the economic data signals it is appropriate. The Fed did not provide a timetable, nor did they indicate a magnitude for the reduced purchases. What was […]
Will the “Great Rotation” Trade Succumb to the “Great Correlation”?
Investors who are betting on the “great rotation” from fixed income markets into equity markets may well be disappointed. As bond yields fell across the global markets, a consensus grew that not only would equity returns exceed bond returns over the next few years, but bond returns would actually be negative. This view encouraged investors […]
Mining for Bitcoin: Another Japanese Triumph For Elegance Over Logic
Satoshi Nakamoto is credited with the creation of ‘Bitcoin’. Bitcoin is a digital currency designed to facilitate transactions while ensuring stable prices. It is modelled on the gold standard that permitted holders of paper money to convert into gold at a fixed price, thus ensuring that the supply of money was fixed in line with […]
With the Rupee Collapsing the Reserve Bank of India Decides to… Sell?
India is a fascinating place. There are so many contrasts and contradictions in the culture that it is impossible to understand in a lifetime. Government and policy practice share these traits. A few weeks ago I blogged that the declines in the Indian Rupee and Indonesian Rupiah could have been completely avoided had the Central […]
Is Monetary Policy Dead?
Last week I presented my views on Quantitative Easing and Tapering at the AsiaMoney Borrowers and Investors’ conference in Singapore. Basically, I pointed out that almost all the monetary injection that had been provided by the US Federal Reserve had found its way back to the Fed because consumers and investors did not want to […]
Private Equity Secondaries… A Rough Exit
“Give us your money and come back in 20 years” is the simple description for private equity investments. PE funds are basically “closed-end funds” that gather cash to invest in a number of private ventures. Once the cash is raised, the investment period can be three to five years or longer, after which the investments […]
Why China and Japan are Panicking Over a US Default
China and Japan are the US government’s largest single creditors. As the two largest owners of foreign reserves in the world, they have consciously invested the majority of their assets in US Treasuries. The reason they chose the US Treasury market is because it fits their strict investment guidelines as determined by their respective Ministries […]
Did Larry Summers Kick the Political Vending Machine?
I first met Larry Summers in a corridor at the University of Rochester. Famished and between sessions at a conference, Mr Summers had just deposited two quarters into a vending machine. His selected snack got stuck in the machine. Angered, he pounded the machine with his fists, and when that failed to dislodge the item, […]
Are the ‘Swing Consumers’ in Emerging Market Currencies the Cause of Crisis?
The most significant development in currency markets over the last 15 years has been the enormous accumulation of foreign reserves by emerging market economies. The Central Banks of China, India, Malaysia, Korea, Taiwan, Indonesia, the Middle East, Brazil and others have elected to stand in the market and purchase foreign currency in the face of […]
What Did Krish and Viss Say at Jackson Hole?
The financial press reacted with astonishment and disbelief to Krishnamurthy and Vissing-Jorgensen’s paper (Krish and Viss) at the recent Federal Reserve conference at Jackson Hole. The two authors simply analysed the “announcement effect” on Treasury, corporate and mortgage bond yields around the announcement date for QE1 and QE2. Exactly why the financial press is so […]
Fed Tapering and Risk
The Federal Reserve released their latest minutes from the FOMC meeting last night. The consensus was that the Fed will start to reduce their asset market purchases gradually when the economic data signals it is appropriate. The Fed did not provide a timetable, nor did they indicate a magnitude for the reduced purchases. What was […]