I argued in an earlier post that the result of forcing Private Sector Involvement (PSI) to forgive some of Greece’s debt would be to raise Sovereign borrowing rates across Europe. Well, I was right and the EU has backed down on forcing future PSI writedowns should member countries find themselves in distress. PSI remains a […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-05-06 06:09:322018-05-21 06:10:02Greece is in no Position to Renegotiate the PSI
When I ordered 20,000 shares in State Street’s High Yield ETF (ticker JNK) in 2009, my broker was concerned that the order was too large to complete in a day without moving the market. JNK was a relatively new vehicle with a market cap of USD 700M that didn’t trade that often. Four years on, […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-02-17 06:38:382018-05-21 06:39:07High Yield Bonds Go Mainstream: A Viable Alternative to Listed Equity
The next financial crisis, according to recent media reports, will be a ‘currency war’. I am not quite sure what this is however I think it is when one country lowers its exchange rate and this leads another to do the same. A series of competitive depreciations follows and this constitutes a war. Currencies are […]
My previous post argued that the Singapore property market is not in a price bubble. This is because the shape and longevity of the price move itself (it doesn’t look like an accelerating exponential speculative market), as well as the demographic in Singapore. However, while ruling out a price bubble, one cannot argue against cyclic […]
The Singapore Government announced its SEVENTH round of taxes and regulations in three years, designed to stop the upward accretion of property prices in the City State. The government believes that a property bubble has formed that needs to be deflated. Are they correct and what can be done? First, I think the price bubble […]
With the Japanese Yen having fallen over 10% in quick time, where is the money going? Japanese investors have enormous appetite for carry (that is, investing in currencies with high short term interest rates). Its no surprise then, that the Indian Rupee is being solidly bought in offshore markets. The ‘Curry Trade’ offers a 6% […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-01-14 06:40:352018-05-21 06:40:58Japanese Carry Addicts Enter the Curry Trade
18 months ago, Mr Jes Staley was being groomed to be Jamie Dimon’s successor at JPMorgan. Three months’ ago, Mr Staley somehow fell by the wayside as other, younger suitors gained favour as Dimon’s successor. This is not unusual in the power politics of large banking organisations and Mr Staley’s departure from JPMorgan, announced this […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2013-01-12 06:41:002018-05-21 06:41:25Jes Returns to his Roots: Private Partnerships on the Rise as ‘Financial Supermarkets’ Slide
Why would 50% of US Republican voters favor a tax rate hike now to pay for Obama’s spending? The answer is that they are going to have to pay for it at sometime in the future, so now is as good a time as any. This logic is not only simple and compelling, it also […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2012-12-13 06:41:292018-05-21 06:41:55Fiscal Cliff or Stairway to Heaven?
“The reason we hire big managers is because, if something goes wrong, they will fix it internally. Its too hard for our Investment Committee to fire a manager, so we rely on our managers to respond themselves” – CRA’s pension plan sponsor, 1993. This comment still resonates with me nearly 20 years after the conversation. […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2012-12-02 06:41:582018-05-21 06:42:32Quality: The New Battleground in Asset Management. Can Alternatives Go Mainstream?
“Greece fails in attempt to buy-back their bonds” will be the headline in a few weeks following the poorly conceived tender off that will be presented to bondholders. How so? Many moons ago I enthusiastically agreed with the proposal to reduce Greek debt through outright purchases of bonds on the secondary market. I had expected […]
http://www.firstdegree.asia/wp-content/uploads/2018/04/logo.png00Timhttp://www.firstdegree.asia/wp-content/uploads/2018/04/logo.pngTim2012-11-29 06:42:352018-05-21 06:43:04Bozo the Clown Advises on Greek Bond Buy-Back Tender
Greece is in no Position to Renegotiate the PSI
I argued in an earlier post that the result of forcing Private Sector Involvement (PSI) to forgive some of Greece’s debt would be to raise Sovereign borrowing rates across Europe. Well, I was right and the EU has backed down on forcing future PSI writedowns should member countries find themselves in distress. PSI remains a […]
High Yield Bonds Go Mainstream: A Viable Alternative to Listed Equity
When I ordered 20,000 shares in State Street’s High Yield ETF (ticker JNK) in 2009, my broker was concerned that the order was too large to complete in a day without moving the market. JNK was a relatively new vehicle with a market cap of USD 700M that didn’t trade that often. Four years on, […]
Currency War? What Currency War?
The next financial crisis, according to recent media reports, will be a ‘currency war’. I am not quite sure what this is however I think it is when one country lowers its exchange rate and this leads another to do the same. A series of competitive depreciations follows and this constitutes a war. Currencies are […]
Singapore Property II…Unintended Policy Distortions
My previous post argued that the Singapore property market is not in a price bubble. This is because the shape and longevity of the price move itself (it doesn’t look like an accelerating exponential speculative market), as well as the demographic in Singapore. However, while ruling out a price bubble, one cannot argue against cyclic […]
Singapore Property I…A Portfolio Perspective
The Singapore Government announced its SEVENTH round of taxes and regulations in three years, designed to stop the upward accretion of property prices in the City State. The government believes that a property bubble has formed that needs to be deflated. Are they correct and what can be done? First, I think the price bubble […]
Japanese Carry Addicts Enter the Curry Trade
With the Japanese Yen having fallen over 10% in quick time, where is the money going? Japanese investors have enormous appetite for carry (that is, investing in currencies with high short term interest rates). Its no surprise then, that the Indian Rupee is being solidly bought in offshore markets. The ‘Curry Trade’ offers a 6% […]
Jes Returns to his Roots: Private Partnerships on the Rise as ‘Financial Supermarkets’ Slide
18 months ago, Mr Jes Staley was being groomed to be Jamie Dimon’s successor at JPMorgan. Three months’ ago, Mr Staley somehow fell by the wayside as other, younger suitors gained favour as Dimon’s successor. This is not unusual in the power politics of large banking organisations and Mr Staley’s departure from JPMorgan, announced this […]
Fiscal Cliff or Stairway to Heaven?
Why would 50% of US Republican voters favor a tax rate hike now to pay for Obama’s spending? The answer is that they are going to have to pay for it at sometime in the future, so now is as good a time as any. This logic is not only simple and compelling, it also […]
Quality: The New Battleground in Asset Management. Can Alternatives Go Mainstream?
“The reason we hire big managers is because, if something goes wrong, they will fix it internally. Its too hard for our Investment Committee to fire a manager, so we rely on our managers to respond themselves” – CRA’s pension plan sponsor, 1993. This comment still resonates with me nearly 20 years after the conversation. […]
Bozo the Clown Advises on Greek Bond Buy-Back Tender
“Greece fails in attempt to buy-back their bonds” will be the headline in a few weeks following the poorly conceived tender off that will be presented to bondholders. How so? Many moons ago I enthusiastically agreed with the proposal to reduce Greek debt through outright purchases of bonds on the secondary market. I had expected […]