Banks are never fans of tougher regulation, but they really don’t like the overhaul of US capital rules proposed at the end of July by the Federal Reserve and other finance authorities. Lenders and their lobbyists have come out fighting.
Now seems like a good time to talk about wrappers and which ones are best for different situations. How do you decide whether to use an ETF, a mutual fund, or something else?
The University of Colorado Buffaloes are undefeated and suck up a lot of oxygen in the college football world.
Playing Shakespeare’s King Lear is the crowning ambition for some actors, but in 2023 we’re seeing superstar hedge fund managers Daniel Och and Ray Dalio trying out for the role in real life.
In a significant turnaround for its aviation sector, Mexico’s air safety rating was upgraded from Category 2 back to Category 1 by the Federal Aviation Administration (FAA). The upgrade could be a game-changer, offering opportunities for both Mexican airlines and their U.S. joint venture partners.
A resilient US economy will prompt the Federal Reserve to pencil in one more interest-rate hike this year and stay at the peak level next year for longer than previously expected, according to economists surveyed by Bloomberg News.
The 10-year Treasury yield has climbed steadily over the past two years. But we believe fixed-income investors should be prepared for lower yields ahead.
A flurry of hedge funds, direct lenders and others are expecting a revival of the $1.3 trillion collateralized loan obligation market — and they want to be ready to reap the benefits when it happens.
The US government has been looking at ways to offload nearly $13 billion of mortgage bonds it amassed from failed lenders Silicon Valley Bank and Signature Bank, according to people with knowledge of the transactions.
In his latest memo, Howard Marks discusses the essential choice in both investing and sports. Should you go for more winners or try to eliminate losers? That is, should you emphasize aggressiveness or defensiveness? This is a key decision that every investor has to make thoughtfully, and the answer can be different for each person.
PIMCO’s Global Advisory Board discusses economic and geopolitical factors shaping the long-term global outlook.
Why has there been a reluctance within the advisory profession to actively collect, much less leverage client experience feedback?
US banking regulators are back to their old tricks. In the wake of a crisis — this time the March demise of a handful of regional banks — they want banks to fund themselves with more loss-absorbing equity capital.
On the interest rate front, the Federal funds rate is now close to systematic benchmarks that have historically been consistent with prevailing core inflation, nominal GDP growth, and unemployment.
Private credit lenders are just getting started in the world of consumer and asset based finance, according to Rob Camacho, Blackstone Inc.’s co-head of asset based finance within the firm’s Structured Finance Group.
Barclays Plc is trying to work out how to make the best of its payments business in its quest to increase the appeal of its shares. One option is selling a stake in the unit that handles card transactions for shopkeepers and other businesses, Bloomberg News reports.
New tests are making it easier for doctors to detect cancer and provide targeted treatments.
For years now, stock traders have been getting so rich betting big companies will get even bigger that they’ve forgotten what a bubble looks like. They’re going to find out thanks to Nvidia Corp.
We believe idiosyncratic credit events may occur over the next 12 months, but systemic bank risk is remote.
Federal Reserve Bank of Atlanta President Raphael Bostic said the US economy faces a period of some disruption as debts are refinanced at significantly higher interest rates, putting some pressure on both financial institutions and the government.
Although high-yield bonds have performed well so far this year, we continue to take a cautious view.
First, let me start with a tweet by Larry Summers, though this chart has been passed around by Andreas Steno Larsen and others.
The US market for initial public offerings is finally reopening after the sleepiest stretch in 32 years. Grocery delivery business Instacart, data automation provider Klaviyo and semiconductor designer Arm Holdings Ltd. all filed to go public last week.
The turmoil in the banking system earlier this year caused private-debt issuers to make concessions, including floating rates and improved covenants, which make this an attractive asset class.
Volatile rates are adding to the cost of residential debt.
A $15.4 billion wave of debt is set to sweep over leveraged finance markets in September as Wall Street banks rush to lure in yield-hungry investors.
In the wake of the Federal Reserve’s annual gathering in Jackson Hole, Stephen Dover, Head of Franklin Templeton Institute, conveys one clear message: interest rates aren’t coming down anytime soon.
The world’s most powerful central bankers have vowed in unison to keep interest rates higher for longer if necessary to tame inflation.
At its annual summit in Johannesburg this week, the bloc of five emerging countries—Brazil, Russia, India, China and South Africa—announced plans to expand for the first time since 2010.
Federal Reserve Chair Jerome Powell signaled the US central bank is prepared to raise interest rates further if needed and keep borrowing costs high until inflation is on a convincing path toward the Fed’s 2% target.
Artificial intelligence (AI) is capable not just of disrupting higher education but of blowing it apart. The march of the smart machines is already well advanced. AI can easily pass standardized tests such as the GMAT (Graduate Management Admission Test) and the GRE (Graduate Record Examination) required by graduate schools.
The role of the human psychological cycle in driving stock and bond prices is well understood and pre-dates behavioural economics. There are elements that suggest we may be going through another period of ‘irrational exuberance’ as several long-term investors seem stuck in the mindset that ‘There Is No Alternative’ (TINA) to US equities.
We have heard lots of commentary on the student loan repayment issues facing almost 44.5 million Americans. Some of these commentaries are correct but there are others that miss the mark.
Government bonds or stocks? If you were picking an asset class to outperform over the next 18-24 months, which would you choose?
Monetary and fiscal policy are typically thought of as independent tools that central banks and governments use to manage the economy.
For this edition of Bull vs. Bear, Elle Caruso and Karrie Gordon discuss the likelihood of continued strong returns for semiconductor ETFs.
There aren’t many bullion investors who haven’t thought about using their stash to buy groceries one day.
It is a radical suggestion, no doubt, but some analysts predict that AI might enable the US economy to achieve an annual growth rate of 30%.
The Agg is supposed to be to bonds what the S&P 500 Index is to equities. But it is an insufficient gauge for measuring the bond universe.
The fraction of enterprise value of large US companies represented by tangible assets — things like real estate and inventory — has fallen from 50% to 20% over the past 15 years.
As businesses worldwide adopt technology, the innovation of AI may result in market leadership changes, global economic growth, and investor opportunities.
One of the scarier financial factoids making the rounds this year is that local and regional banks hold 70% of US commercial real estate debt.
Bankers are warning that tougher capital rules being proposed by the Federal Reserve and other US regulators will push more risks out of well-regulated lenders and into markets.
Across Wall Street, there’s growing relief that the Federal Reserve — at long last — may be done raising interest rates. But that doesn’t mean turbulence in the bond market will soon become a thing of the past.
For the years following the Lehman crisis, the Fed put was the norm. Exceptionally loose monetary policy ensured risk assets had a safety net. But central banks were unable to rehabilitate the real economy while governments kept their belts tight.
All of a sudden, the short-volatility trade is back on Wall Street as billions of dollars pour into options-selling ETFs like never before.
For this edition of Bull vs. Bear, Karrie Gordon and Nick Peters-Golden discuss the case for trading in the old 60/40 portfolio for an alts augmented 50/30/20 portfolio.
It could take just a 1% move in the S&P 500 — up or down — every day for a week for the rally in US stocks to come under significant pressure.
After an unprecedented pause that started in March 2020, student loan repayments will finally resume in October 2023.
