CDS: Credit Default Swaps – Part 1
If you still remember the Great Financial Crisis of 2008, the European Debt Crisis in 2011, or the significant downturns during COVID-19 (March 2020), you might have encountered the term CDS or Credit Default Swaps. Since this is not a standard financial instrument like stocks or bonds, I decided to introduce you to this interesting derivative.
The Next $20 Trillion in Alternative Investment Landscape
Once upon a time, hedge funds ruled the world. That’s how a fairy tale could begin. In reality, just 20 years ago, alternative investments amounted to $4.8 trillion, or 6% of the world’s total managed assets, and hedge funds comprised a significant portion of this allocation.
The Role of Alternative Investments and Hedge Funds in a Traditional Portfolio
At Stonebridge Capital, we are convinced that we have undoubtedly entered a new macroeconomic regime, in which the traditional relationship between stocks and bonds has changed significantly. Investors should consider new approaches to asset allocation.
Auction Theory
Part 3
In the first 2 articles of our mini-series on Auction Theory, we discussed ways to measure market value. In the current third installment, we will elevate the entire concept and, using a practical example from the S&P 500 index, we will connect our previous knowledge to the creation of a comprehensive narrative.
Auction Theory
Part 2
In the first part of our series on Auction Theory, we discussed the perspective of value through the lens of profiles. We explained why and how market value is formed and how we can identify the previous value area (Prior Value Area – PVA). In today’s second part, we will move from theoretical examples of buying and selling cars to practical examples, specifically focusing on the American S&P 500 index. We will also look at another way to identify value along with the so-called Developing Value Area (DVA).
Q4 2022:
Weathered The Storm
In addition to Q4 events, we have also evaluated the past year 2022. The main topic of 2022 was inflation and the associated reaction of central banks, or the dynamics of interest rate growth. The most anticipated recession in history is most certainly about to come this year. Never before in the modern history of financial markets has the expectation rate of the arrival of a recession been so high (more than 70%).
Singapore’s Asset Management Sector Surges to Record as Funds Expand
Singapore’s asset management industry grew to a record size last year, outpacing global growth in the sector as the country benefited from more business from global and regional funds.
Q3 2022:
Roller Coaster Ride
High inflation, energy prices or rising interest rates. Despite some optimistic outlooks towards the end of the year, global risks remain a concern for investors, particularly because of an increasing likelihood of recession, as resulted from the macroeconomic and geopolitical events.
Inflation:
Miles to Go
At the end of the previous analysis, we pointed out our distrust in the FED-promoted argument of a short-term inflationary shock caused strictly by the supply side. With the passage of time, we can assess that the inflation rate in the short term got out of the control of the central bankers.
