Mon, Jul 25, 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 Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New