Investors are facing a similar conundrum to a person onboard the Titanic’s maiden voyage who knows how the journey will end. The correct response to the risk ahead is to loiter around the lifeboats in credit and equity investments.
If Australian politicians care about housing affordability and the quality of life of Australians, they will quit talking and start implementing these eight obvious and needed changes.
The defaults by Toys R Us and Puerto Rico were remarkably similar, even though corporate debt and sovereign debt are quite different. This article highlights three lessons that can be taken from both and one lesson that highlights a key difference between corporate and sovereign debt.
The issue of bonds by Tajikistan this month follows on from recent low quality bond issues from Argentina, Greece and Iraq.
The old saying that history doesn’t repeat but often rhymes sums up the fervour surrounding cryptocurrencies and blockchain.
The Bank for International Settlements (BIS) quarterly report is always worth the read. Whilst it is academic in style and length, it consistently raises material that matters. Taken from the September report, the graphic below highlights the big issues for global corporate debt. The rest of this short article explains each component and its importance.
One of the classic signs that the credit cycle is nearing the end is that borrowers that shouldn’t be getting financed not only get funded, but get it at terms that seem crazy.
June 2017 saw three notable failures of European banks under the new bank resolution regime. Investors seeking to avoid losses on future bank failures can takeaway eight key lessons from this month’s examples.
Australians have rightly applied the blowtorch to their politicians for housing being increasing unaffordable. The Federal Treasurer, Scott Morrison, has now turned the blowtorch onto financial regulators for their part in the problem. This article details what the regulators should have started doing years ago to fulfil their respective roles in creating a stable financial system.
With so many fund managers overcharging and underperforming it’s no surprise that there’s a trend towards internalising funds management. However, Harvard’s experience shows that internalising is far easier said than done.
The run of redemptions and lock-up of the Dallas Police and Fire Pension fund was entirely predictable. The same conditions exist elsewhere and point to a wave of state and local government pension and debt defaults in the coming decade.
Banks are complex, but understanding why banks fail and what can be done about it doesn’t have to be.