Monthly Archives: May 2017
Evaluating Value and Momentum Strategies in Latin American Markets
Factor investing has continued to gain momentum in recent years, but the strategy has been predominantly adopted in the developed markets, and research on factor-based strategies in emerging markets remains scarce. Emerging markets (as measured by the S&P Emerging BMI) returned -13.52% in 2015 but recouped most of the losses in 2016 with a return…
- Categories Factors
- Tags factor investing, Latin America, momentum, value
- Categories
- Factors
China’s Bank Stress Test and its Exposure to Environmental Risk
In just over two years, China has developed a policy framework for green finance that aims to shift capital from “brown” fossil fuel industries to “green” low-carbon technologies. We have also seen impressive growth in Chinese green bond issuance that has taken the world by surprise. On joining-up green finance policy and practice, China is…
- Categories Sustainability
- Tags China, environmental taxation, green finance, ICBC, sustainability, Trucost
- Categories
- Sustainability
Sector Diversification through Index Linked Products
The proverb “do not put all your eggs in one basket” is what diversification achieves when it comes to investment. A portfolio can be diversified by investing in multiple asset classes, such as stocks, bonds, real estate, commodities, etc. A diversified portfolio helps improve the risk/return profile of the investments. In capital markets, diversification refers…
OPEC’s Cuts Are Shrinking Trading Opportunities
The unintended consequences of OPEC’s policy (in summer of 2014) of flooding the market with oil to lower prices and gain market share are starting to show. It seems they failed to realize increasing the price by cutting back supply wouldn’t work with high U.S. inventories. The spare capacity of OPEC does not matter for…
- Categories Commodities
- Tags brent, China, commodities, contango, crude oil, jodie gunzberg, oil, OPEC, S&P GSCI, WTI
- Categories
- Commodities
Dividend Growers vs High Dividend Yielders: How They Compared as Interest Rates Rose
There are generally two types of dividend strategies: Dividend growers: Those targeting stocks that consistently grow their dividends over time High dividend yielders: Those focusing on stocks that pay a high dividend yield Not all dividend strategies are created equal These dividend strategies are constructed differently and may be used to accomplish different objectives. For…
Rieger Report: The World is Flat
There have been a myriad of articles with headlines and content about rising rates, the coming evisceration and other zombie apocalypse events in the bond markets. There can be no doubt that yields for fixed income asset classes are low and there is also no doubt that rates will eventually be higher. How, when and…
- Categories Fixed Income
- Tags bond yields, corporate bonds, fixed income, J. R. Rieger, municipal
- Categories
- Fixed Income
History of the 401(k)
Thirty-nine years ago, the Revenue Act of 1978 was signed, adding section 401(k) to the Internal Revenue Code and creating the first US defined contribution plans. While the code itself simply described a provision under which employees would not be taxed on the portion of income they chose to receive as deferred compensation, it ushered…
- Categories Uncategorized
- Tags 401k, Dimensional Fund Advisors, retirement
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- Uncategorized
Green Bond Update for May 2017
Green bond Issuance picked up in the first two weeks in May compared with the previous two-week period. Twenty new green labeled bond offerings were announced, including 11 U.S. municipal offerings with maturity structure (215 unique instruments). Issuance totaled USD 7.56 billion, of which USD 2.4 billion was in U.S. municipal bonds. Of note, German…
The Wind Bloweth Where It Listeth…
In the latest quarterly rebalance (effective at market close on May 19, 2017), the S&P 500 Low Volatility Index added more weight from the technology sector. The jump from 7% to 12% is the largest increase for any sector. Meanwhile, the index continued to shed weight in Consumer Staples and Utilities, historically the stalwarts of…
100 Days Later in Mexico
100 days…is it a milestone? Is it a key number? I’m not sure, but everybody looks like they love to write about it, so I will too. What I know is in Mexico we have a saying that goes, “If the U.S. sneezes, Mexico gets a cold.” Following Dennis Badlyans’s post “Does the Outperformance of…
- Categories Fixed Income, Uncategorized
- Tags fixed income, inflation, MBonos, Mexican peso, Mexico, UDIBonos
- Categories
- Fixed Income, Uncategorized