Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Lyxor research finds reduced tail risk and a bumpy landing lie ahead for financial markets

Thursday, October 25, 2012

Beverly Chandler, Opalesque London: A research flash report from Lyxor Cross Asset Research Study for the fourth quarter of 2012, entitled 'Central Banks Buy More Time’ finds that hedge fund managers will benefit from stock selection.

The firm writes: "We believe the ECB’s "whatever it takes" promise substantially reduced tail risks. Risk premiums that have remained abnormally high since the outset of the financial crisis, should diminish over time." However, the firm warns that the road to normalization will probably be long and bumpy. "While policy uncertainties persist in the Eurozone, they are mounting in the U.S. which is facing the so-called "fiscal cliff". But the aggressive monetary policies across the world mean that the trough in the economic cycle could occur earlier than we previously had in mind".

Strategically, Lyxor continues to favor U.S. assets but have tactically raised their stance on the more volatile Eurozone equities to the same slight overweight stance. "Fundamentally, austerity continues to take its toll on European growth, thus compromising fiscal targets. Within Emerging markets, we believe EM equities should soon benefit from additional policy support and later from improved economic momentum" the firm writes.

For Lyxor, the most striking feature of financial markets since the crisis is probably investors’ inordinate antipathy towards equity. "Current equity risk premiums are far above......................

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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November