Thu, May 24, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Big Picture: Volatility is here to stay

Tuesday, February 27, 2018

amb
Bill Michaelcheck
Benedicte Gravrand, Opalesque Geneva:

Bill Michaelcheck, founder and CIO of Mariner Investment Group, an alternative asset manager headquartered in New York, believes the market has turned a corner and that volatility is here to stay. Now is a good time for fixed income investors to do arbitrage bets, he says. He explains why here.

Opalesque: Why do you think volatility is here to stay? 

Bill Michaelcheck: First of all, the Central Banks are starting to remove the monetary stimulus of the last several years in two ways; the Fed is gradually raising interest rates and reducing their portfolio of government bonds. This is putting pressure on the private market.

In the coming year, the Fed will reduce its balance sheet by approximately $200 billion, which is additional debt to be bought by the market from the roughly $1 trillion deficit the U.S. is forecasting.

This means we are more than doubling the U.S. securities that will be put into the market place in the coming year.

Of course, this fiscal stimulus when the economy is strong and unemployment is at a multi-year low, would be considered to be putting fuel on a roaring fire in terms of Keynesian economics.

So we're seeing this pro-cyclical fiscal stimulus right on top of monetary tightening. To me, this is like having one foot on the gas and one foot on the break.  

The bigger issue is that the investors are starting to feel that the political leaders in Washingto......................

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 - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven