Thu, Aug 28, 2014
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius