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BoE intervention whipsaws pension funds that dumped hedges
Unhedged funds saw liabilities rise by up to 20% when rates pulled back
Pension funds foresaw margin meltdown (a decade ago)
Years of warnings went largely unheeded. Questions may now spread to post-crisis clearing and margining project
Keep risk parity simple, stupid
In times of volatility, simpler risk parity strategies may outperform more elaborate counterparts
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The positive impacts of refinancing debt at historically low coupons will last for years to come, keeping defaults at benign levels even in a worst case, hard landing scenario
George Westervelt, global head of high yield, Abrdn
You don’t buy stuff because it’s cheap when the ship is sinking
Charles de Boissezon, global head of equity strategy, Societe Generale
We have examined these particular issues. We are confident that we are regulating these companies appropriately.
David Burt, Premier of Bermuda, talking about private equity-owned insurers
Editor's Choice
No link between geopolitical risk signals and returns – hedge fund
Gauges of geopolitical risk are better at predicting volatility than equity returns, research from XAI finds
Big Figure
Crypto diversification
This year’s cryptocurrency collapse, which occurred as selloffs were taking place in stocks and bonds, has cast doubt on the asset class’s credentials as a source of diversification. Research shows that when stocks are down by more than 20% quarter-on-quarter, bitcoin’s correlation with other asset classes rises.
Read the full articleRegulation
Pension funds foresaw margin meltdown (a decade ago)
Years of warnings went largely unheeded. Questions may now spread to post-crisis clearing and margining project
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