Mon, Oct 5, 2015
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. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. Investing - U.S. biotech bloodbath hits hedge funds but some bargains emerge, Computer-driven hedge funds betting on further stock selloff[more]

    U.S. biotech bloodbath hits hedge funds but some bargains emerge From A seven-day selloff of U.S. biotechnology stocks has hit sector investors - especially hedge funds - hard. But some managers say it was overdone and are already eyeing bargains such as Gilead Sciences Inc

  5. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid