Tue, Jun 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Old Park’s Bruno Pannetier says Fed tapering and emerging markets could lead to volatility in 2014

Thursday, January 30, 2014

Komfie Manalo, Opalesque Asia:

Bruno Pannetier, CIO of London-based asset management firm Old Park Capital said that quantitative easing (QE) tapering by the Fed has meant excess liquidity in emerging markets has dried up and their economies are left frail and naked.

Pannetier said, "The Fed’s decision to begin QE tapering on 18 December surprised many as the consensus was that tapering would not begin until the first quarter of 2014. The equity rally that followed was a surprise too. The recent and expected economic growth, especially in the U.S., coupled with reassuring comments/forecasts from the Fed have led many market participants to believe that growth may be stronger than expected, which could compensate for the increase in long-term interest rates which is likely to occur as the Fed reduces QE."

He said this situation would naturally put the spotlight on corporate earnings growth and whether earnings growth will be enough to compensate the expected increase in long-term interest rates. This means a departure from what has been the market focus over the last few years.

"Over the last five years, the main drivers of market behaviour have been macro news as this data was driving risk premia, with an expansion of risk premia from 2008 to 2011 followed by a contraction in 2012 and 2013 as major structural issues driving the fiscal/monetary policies were resolved and macro data improved,"......................

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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s