Mon, Jun 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

BlackRock, UBS examine fiscal cliff scenarios

Tuesday, October 09, 2012

Bailey McCann, Opalesque New York:

Global financial firms BlackRock and UBS released analyses today that look at what will happen if sequestration is allowed to kick in, in the US. According to report authors at the BlackRock Investment Institute (BII), a 'dangerous disconnect,' exists between professional investors and Washington experts. In recent BII-moderated discussions, Washington insiders predicted political dysfunction will push the nation off the cliff – if only briefly, providing politicians the necessary cover for compromise and a budget deal by fall 2013. However, this is a "dangerous disconnect," BlackRock says. "By contrast, most financial experts believe in an 11th-hour rescue that will enable the country to avoid a recession." With the S&P 500 near record highs, the markets have yet to price in the fiscal cliff "and assume QE infinity will drown out other factors," according to the report.

Report authors note that this expectations gap could create new investment opportunities in a variety of asset classes including - treasuries, munis and dividend stocks. "The country is on the wrong fiscal path. Mathematically, it is pretty easy to change the course through a combination of tax givebacks and spending cuts. Politically, this is very tough to do – unless Washington rediscovers the art of compromise......................

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. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  2. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  3. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  4. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  5. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to