Mon, Jun 27, 2016
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 Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider