Tag Archives: COVID-19

Nov 17, 2020

Where Do You See Yourself in Five Years? China Stocks Up ahead of Their Latest Five-Year Plan

When discussing global economic recoveries, China is usually at the forefront of the conversation. As of Nov. 16, 2020, metal commodities with an industrial focus were the outperformers YTD. China is the world’s top industrial metal destination. Exhibit 1 shows the top 10 performing commodities tracked by S&P DJI. Seven metal commodities made it to…

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Nov 16, 2020

India’s Contribution to the Global Economic Recovery

Discussions regarding a K-shaped recovery from COVID-19 highlight disparities across different commodity sectors. India seems to be experiencing its own version of this, with some areas improving faster and stronger than others. Decreased importation costs have served as a tailwind to help India. Energy accounts for about one-third of India’s total imports, and as crude…

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Nov 13, 2020

The Fed’s Corporate Bond Purchases and Their Impact on Corporate Bond Issuance

In response to COVID-19 and its disruptive impact on the credit market, the U.S. Federal Reserve announced the creation of the Primary Market Corporate Credit Facility (PMCCF) and the Secondary Market Corporate Credit Facility (SMCCF) on March 23, 2020, to support the functioning of the credit market. The PMCCF provides a funding backstop for corporate…

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Nov 5, 2020

While Fixed Income Yields Remain Low, Theta Gang Generates Income through Covered Calls

In response to the economic ravages of COVID-19, central banks and investors around the world went on a bond buying spree, pushing fixed income yields down and complicating the search for portfolio-generated income. While yields are generally off their March 2020 extremes, by historical standards they remain quite diminished. One alternative strategy to generate supplemental…

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Oct 21, 2020

The Unrewarded Risk of Supernormal Fund Returns

The recently released SPIVA® Europe Mid-Year 2020 Scorecard had the unique opportunity to pit the performance of active funds against their passive benchmarks through an exceptionally rare event. The economic fallout from the coronavirus pandemic brought a period of extreme volatility, the likes of which have not been seen in Europe since the global financial…

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Oct 6, 2020

Did Australian Active Funds Outperform Benchmarks amid the COVID-19 Pandemic?

With the COVID-19 pandemic, equity markets around the world experienced massive declines with heightened volatility, and the Australian equity market was not immune. Various equity market segments experienced rapid market sell-offs followed by slow recoveries in H1 2020, with the S&P/ASX 200, S&P/ASX Mid-Small, and S&P/ASX 200 A-REIT decreasing 10.4%, 6.9%, and 21.3%, respectively. Due…

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Sep 15, 2020

Why S&P 500 and DJIA Futures Could Be Useful for Asian Investors during the COVID-19 Selloff

The co-movement of returns that emerged from the interconnection of global markets has important consequences in terms of portfolio hedging and risk management. In our paper, Regional Relevancy of S&P 500® and Dow Jones Industrial Average Futures® in Asia, we highlighted three characteristics of S&P 500 and Dow Jones Industrial Average (DJIA®) futures could potentially…

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Aug 18, 2020

The Flood of U.S. Treasury Issuance and Duration Supply Continues

In its Q3 2020 refunding statement1 released on Aug. 5, 2020, the U.S. Treasury announced its plan to increase auction sizes across all nominal coupon tenors over the August-October quarter, with larger increases in longer tenors (7-year, 10-year, 20-year and 30-year). To gauge the demand appetite for U.S. Treasuries, let’s review the size and composition…

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Aug 7, 2020

How Does Passive Investing Work in Uncertain Times?

Many advisors feel that their favorite active manager will guide them through market volatility and limit drawdowns during times of market stress. But is that how things played out at the beginning of 2020? S&P DJI’s Brent Kopp and Berlinda Liu take a closer look at COVID-19’s impact on active vs. passive performance.

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Jul 27, 2020

How Factors Behaved Differently in the Australian Market in the First Half of 2020

In our paper “How Smart Beta Strategies Work in the Australian Market,” we examined the long-term performance characteristics of S&P DJI’s Australian factor indices in different market trends. In the first half of 2020, the Australian equities market had a roller coaster response to the coronavirus outbreak, global market crash, and government stimulus packages. While…

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