Tue, May 26, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

 

banner