Mon, Aug 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Credit Suisse says investing driven by high volatility, low-yeilds the 'new normal'

Wednesday, April 11, 2012

Bailey McCann, Opalesque New York: Credit Suisse Asset Management has released a new whitepaper which says that the 'new normal’ for investing will be defined by highly volatile markets and low yields. The paper "New Normal Investing: Is the (Fat) Tail Wagging Your Portfolio?" authored by Yogi Thambiah and Nicolo’ Foscari, both from the Investment Strategy Americas CIO Office, builds on the thesis stated in earlier papers from the two authors and provides prescriptions for adjusting risk frameworks to be more responsive.

According to the authors, fluctuations in risk appetite will be more frequent and portfolio returns will be increasingly derived from the tails going forward. In order to be responsive to this managers and investors alike will have to adjust their overall risk framework and look at strategies that when blended with traditional beta can reduce downside risk and mitigate unfavorable return distributions.

Data in the paper shows that the intervention of central banks coupled with global deleveraging and fiscal austerity measures have slowed growth while increasing overall market volatility. "In our view, we believe the aggressive tactics undertaken by policy makers over the past several years have driven economies and markets to become increasingly reliant on these interventionist measures. This may, in turn, contribute to an extended period of market uncertainty and volatility. Also, the US Treasury market has been in a decades-long, secular bull......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner