Fri, Jun 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Risk turns upward after five consecutive quarterly declines

Thursday, July 25, 2013

Bailey McCann, Opalesque New York:

Risk trended upward after 5 consecutive quarters of declining volatility, driven by concerns over macro events such as the US Federal Reserve’s change in QE policy, China’s slowing economic growth, and the continued measures of Japan’s central bank to stimulate its economy, according to the latest Axioma Insight: Quarterly Risk Review.

The impact of the concerns was reflected most strongly in China and Japan, though the rest of Asia also reacted negatively, pointing to a possible shift in the focus of economic worries from Europe—which dominated headlines a year ago—to Asia. Ironically, reaction to the comments from the US Federal Reserve was stronger in Asia than it was in the US, though uncertainty regarding US market intervention led to an increase in volatility and asset-asset correlations in both US and Asian markets, which then spread to other markets around the world.

The latest quarterly results contrasted with those of the first quarter, when investors largely ignored macro concerns, including the threat of US sequestration, panic in Cyprus and weak job growth. Late June saw a sharp increase in volatility in Chinese equity markets, as a steep rise in interbank lending rates followed Chinese government efforts to clamp down on that country’s shadow banking system, which has allowed excessive credit growth outside of the regulated lending markets.

"Risk in most markets is still fairly low, relatively speaking," not......................

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. Comment: For emerging market debt, a sustainable recovery[more]

    Matthias Knab, Opalesque: Standish Mellon Asset Management Company writes on Harvest Exchange: After several difficult years, the outlook for emerging market debt (EMD) denomin

  2. J.P. Morgan Global Alternatives raises distressed shipping fund[more]

    From Institutionalinvestor.com: J.P. Morgan Global Alternatives has closed a $480 million fund to invest in distressed shipping assets, attracting capital from pensions, endowments and insurance companies. The firm, which has been investing in maritime for more than a decade, initially targeted $400

  3. 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

  4. 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,

  5. 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