Asia Fixed Income: How Big is the Pan Asia Bond Market?

The S&P Pan Asia Bond Index tracks the performance of the local currency bonds in the 10 Pan Asian countries. The market value tracked by the S&P Pan Asia Bond Index has expanded three fold to USD 6.7 trillion since the index’s first value on Dec. 29, 2006. This rapid expansion warrant some attention as Read more […]

Beware The Bear: Turning Points Indicated By Mean Reversion

What a difference a summer makes. While many of us enjoy perfect weather, it is a nightmare for a long-only investor in agricultural commodities. Further, the drop in energy from easing supply disruptions in the middle east and slowing demand from China and the Eurozone have caused the Dow Jones Commodity Index (DJCI) to lose Read more […]

Russia, Where’s The Wheat?

Wheat lost more than 8% in July from the near perfect weather that brought the agriculture sector down to its lowest in four years.  Now, in the first week of August the DJCI All Wheat Total Return is already up 5.4% MTD through Aug 7, despite a 1.2% loss for the day. However, Russia’s food trade ban has implications that Read more […]

The Dim Sum Bond Market Expanded 57% YTD in 2014

On the back of strong issuance this year, the size of the dim sum (as known as Offshore Renminbi) bond market, that tracked by the S&P/DB ORBIT Index, rose 57% year-to-date (YTD) to currently CNH 264 billion. As shown in Exhibit 1, 68% of the dim sum bond market is composed of the credit issuers.  Note that the index Read more […]

Now Your Penny Is Worth More: It’s What’s On The Inside That Counts

Do you know what is inside that seemingly copper penny? It may be more valuable than you think. I’ll give you a hint: It rhymes with think. Inside the industrial metals, we usually speak of copper and aluminum, especially in the context of the spread trade where it seems aluminum is perpetually more abundant than Read more […]

How Did The Chinese Bonds Perform in 1H 2014?

As the Chinese bond market rapidly expands, reaching almost CNY 30 trillion, it has gained an increasing amount of attention from global investors.  Tracked by the S&P China Bond Index, the total return of the CNY-denominated bonds rose 5.7% in the 1H of 2014. While the risk of default put downward pressure to the Chinese corporates Read more […]

A Misconception about the Asian Bond Markets

Recently at a panel discussion that I participated, one topic we talked about was if the bond price volatility in Asia is an obstacle to the investors. I believe it is a common misconception in the market. A volatility analysis was run on the local currency denominated bonds of the 10 countries that tracked by the Read more […]

3 Reasons Putin’s Nat Gas Deal Is A Big Deal

It’s not just because it took 10 years to negotiate with China or is worth $400 billion, but the new deal Gazprom signed to supply 38 billion cubic meters (bcm), which is about the amount NY state uses annually, of natural gas to China each year for the next 30 years may be a major game changer Read more […]

Investing is Simple…Really?

Investing, for some can be a pretty cumbersome task. Surprisingly, many professionals may also confess to being lazy in the “investing” department. Very often investment houses enthuse the dormant investors with a rendition of a very popular slogan, “You are working hard for money, but is your money working hard for you?” It’s the same Read more […]

Is Climate Change Impacting Your Grocery Bill?

It doesn’t take a weatherman to point out the crazy weather we have experienced in the recent past. There are more severe droughts, storms, freezes and heat that many blame on climate change. The National Climate Assessment, that will drive Barack Obama’s environmental agenda, notes that average temperature in the US has increased by about 1.5F (0.8C) since 1895, Read more […]