Fri, Jan 20, 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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised