Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Strict Standards: Declaration of UserSettings::get() should be compatible with AbstractSettings::get($col_key1, $col_key2 = NULL, $col_key3 = NULL) in /home/marketch/public_html/blogs/inc/users/model/_usersettings.class.php on line 0

Strict Standards: Declaration of UserSettings::set() should be compatible with AbstractSettings::set() in /home/marketch/public_html/blogs/inc/users/model/_usersettings.class.php on line 0

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 304

Warning: Cannot modify header information - headers already sent by (output started at /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php:223) in /home/marketch/public_html/blogs/inc/sessions/model/_session.class.php on line 222

Strict Standards: Declaration of BlogCache::get_option_list() should be compatible with DataObjectCache::get_option_list($default = 0, $allow_none = false, $method = 'get_name', $ignore_IDs = Array) in /home/marketch/public_html/blogs/inc/collections/model/_blogcache.class.php on line 0

Strict Standards: Declaration of Blog::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/collections/model/_blog.class.php on line 54

Strict Standards: Declaration of Blog::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/collections/model/_blog.class.php on line 54

Strict Standards: Declaration of Skin::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/skins/model/_skin.class.php on line 0

Strict Standards: Declaration of CollectionSettings::_load() should be compatible with AbstractSettings::_load($arg1 = NULL, $arg2 = NULL, $arg3 = NULL) in /home/marketch/public_html/blogs/inc/collections/model/_collsettings.class.php on line 0

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 236

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Strict Standards: Declaration of ItemListLight::query() should be compatible with Results::query($create_default_cols_if_needed = true, $append_limit = true, $append_order_by = true, $query_title = 'Results::Q...') in /home/marketch/public_html/blogs/inc/items/model/_itemlistlight.class.php on line 48

Notice: Array to string conversion in /home/marketch/public_html/blogs/inc/_core/_param.funcs.php on line 1199

Notice: Array to string conversion in /home/marketch/public_html/blogs/inc/_core/_param.funcs.php on line 1199

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 223

Warning: Cannot modify header information - headers already sent by (output started at /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php:223) in /home/marketch/public_html/blogs/inc/_core/_template.funcs.php on line 59
Capital Markets - News and analysis

Strict Standards: Declaration of ComponentWidget::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/widgets/model/_widget.class.php on line 0
  • Home

  • Strict Standards: Declaration of ItemTypeCache::get_option_array() should be compatible with DataObjectCache::get_option_array($method = 'get_name', $ignore_IDs = Array) in /home/marketch/public_html/blogs/inc/items/model/_itemtypecache.class.php on line 0

    Strict Standards: Declaration of User::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/users/model/_user.class.php on line 0

    Strict Standards: Declaration of User::dbdelete() should be compatible with DataObject::dbdelete() in /home/marketch/public_html/blogs/inc/users/model/_user.class.php on line 0

    Strict Standards: Declaration of User::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/users/model/_user.class.php on line 0
  • Contact
  • Log in
 

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Pages: 1 2 3 4 5 6 7 8 9 10 11 ... 71 >>

03/27/14


Strict Standards: Declaration of GenericCategoryCache::clear() should be compatible with DataObjectCache::clear($keep_shadow = false) in /home/marketch/public_html/blogs/inc/generic/model/_genericcategorycache.class.php on line 49

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 304

Strict Standards: Declaration of GenericCategory::set() should be compatible with DataObject::set($parname, $parvalue, $make_null = false) in /home/marketch/public_html/blogs/inc/generic/model/_genericcategory.class.php on line 45

Strict Standards: Declaration of Chapter::dbupdate() should be compatible with DataObject::dbupdate($auto_track_modification = true) in /home/marketch/public_html/blogs/inc/chapters/model/_chapter.class.php on line 38

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334
Charlie Rose interviews google's Larry Page - where is google going next?

Permalink 07:57:50 am, by editor of MarketObservation.com Email , 4 words   English (US)

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334
Categories: Media

Warning: Creating default object from empty value in /home/marketch/public_html/blogs/inc/settings/model/_abstractsettings.class.php on line 334

Highly interesting stuff!

March 2014

01/11/14

Permalink 09:18:32 am, by editor of MarketObservation.com Email , 178 words   English (US)
Categories: News, Media

Find here some really interesting numbers on the development of mobile computing in the US - Trends which went global:

Reflections of a NewsOSaur: Mobile offers local media a digital do-over, Jan. 3, 2014

Excerpt:

.."Fully 79% of the 181 million Americans who own smartphones reach for them within 15 minutes of waking up in the morning, according to a survey last year by IDC. And here’s what they do: 78% check email, 73% browse the web, 70% use Facebook, 64% get directions, 60% play games, 57% search for information, 44% read news or sports, 43% talk and/or text, and 37% make or view videos.

This has unhinged news consumption. In comparing preferred news sources among Americans, Pew found 68% chose television in 1991 vs. 55% in 2012, 56% chose newspapers in 1991 vs. 33% in 2012 and 54% chose radio in 1991 vs. 33% in 2012. By contrast, 30% of Americans named the Internet and mobile media as their preferred news outlets in 2012. A separate Pew study in 2013 found that the Internet is the top news choice for nearly half of those under the age of 45, as compared with the 17% in the cohort who favor newspapers."
Source: Reflections of a NewsOSaur

Keywords: Mobile Computing, Internet

01/03/14

Permalink 08:20:28 am, by editor of MarketObservation.com Email , 333 words   English (US)
Categories: Banks/Investment Banks, Regulation

Davis Polk: Explaining the Volcker Rule in 27 Pages

Davis Polk: Flowcharts on final Volcker Rule

"Normally, it’s not in the nature of law firms to oversimplify complex government regulations for their biggest customers. But Davis Polk & Wardwell LLP has decided to do just that for its mega-banking clients to start off the new year, giving them a handy, color-coded, “user-friendly” flow chart to help them navigate the Volcker rule, which restricts banks from making market bets with their own capital.

How simple? The chart extends over 27 pages.

Take Step 2D-2, on page 11, which describes permitted trading in foreign government securities. There are 13 boxes, diamonds, or circles on the page, (plus eight yes’s and eight no’s). It notes how the rule impacts foreign affiliates of U.S. banks, but not foreign branches of the banks.

“Everybody is finding it a huge challenge to describe this one,” said Margaret Tahyar, a Davis Polk partner who oversaw the drafting of the charts. “It’s super hard to summarize.”

Intimidating as the chart may be, it reflects the breadth and density of the regulation, which extends for close to 1,000 pages. The Volcker rule is part of the Dodd-Frank Act, a response to the financial crisis that is intended to reduce systemic risks in the banking system. Though the Volcker rule does not take full effect until mid-2015, bankers have been gobbling up information to help guide them to safety. Ms. Tahyar said that a preliminary version of the flow chart that Davis Polk formulated based on proposals was downloaded more than 100,000 times.

But if the chart and its many arrows and red warning boxes seems challenging, Ms. Tahyar has what may be an unwelcome message. “You’re looking at half the rule,” she said. A flow chart on the second half, about limits on the investments banks may make in hedge funds and other trading firms, is due next week, and it is likely to be longer than the earlier chart."
Source: New York Times

Keywords: Volcker Rule, Regulation

12/31/13

Permalink 10:42:45 am, by editor of MarketObservation.com Email , 114 words   English (US)
Categories: News, Media

HBS Cases: What Warren Buffett Saw in Newspapers, by Deborah Blagg, Dec. 30, 2013

Quotes in article:

Buffett: "In Grand Island, Nebraska, everyone is interested in how the football team does. They're interested in who got married. They're maybe even more interested in who got divorced."

Prof. Benjamin C. Esty (Harvard): "In retrospect, his targeting just the smaller papers is a big clue about his forecast for the industry. Unlike regionals or big-city papers, small-town newspapers don't have a lot of competition or good substitutes."

read the whole article by clicking here

Keywords: Media, Newspapers, Warren Buffett

Related:

Buffett will definitely also face major challenges:

Reflections of a Newsosaur, Local news rivals doom publisher pay walls

12/26/13

Permalink 09:47:50 am, by editor of MarketObservation.com Email , 129 words   English (US)
Categories: Investment, Academic

Sato, Yuki, Opacity in Financial Markets (September 7, 2013). Swiss Finance Institute Research Paper No. 13-63. Available at SSRN: http://ssrn.com/abstract=2371384

Abstract:

This paper studies the implications of opacity in financial markets for investor behavior, asset prices, and welfare. Transparent funds (e.g. mutual funds) and opaque funds (e.g. hedge funds) trade transparent assets (e.g. plain-vanilla products) and opaque assets (e.g. structured products). Investors can observe neither opaque funds' portfolios nor opaque assets' payoff s. Consistent with empirical observations, an "opacity premium" arises: opaque assets trade at a premium over transparent ones despite identical payoffs. This is accompanied by endogenous market segmentation: transparent (opaque) assets are traded only by transparent (opaque) funds. The opacity premium incentivizes financial engineers to render transparent assets opaque deliberately. Source: SSRN

Keywords: Opacity, asset Prices, Moral Hazard, Signal Jamming

12/21/13

Permalink 09:43:16 am, by editor of MarketObservation.com Email , 331 words   English (US)
Categories: Analysts, Investment, Academic

Clare, Andrew and Seaton, James and Smith, Peter N. and Thomas, Steve, European Equity Investing Through the Financial Crisis: Can Risk Parity, Momentum or Trend Following Help to Reduce Tail Risk? (July 25, 2013). Available at SSRN: http://ssrn.com/abstract=2368208 or http://dx.doi.org/10.2139/ssrn.2368208

Abstract:

"A growing body of literature suggests that over widely varying historical eras and across a wide range of asset classes momentum investing, often accompanied by a trend following overlay, provides superior risk-adjusted returns. We examine the effectiveness of applying these methodologies to pan-European equity asset allocation through periods of potentially substantial market dislocation, in particular, with the advent of the single currency and the equity market crashes of the early 2000’s and 2008. With the introduction of the Euro there has been much discussion of the benefits of diversification via country based portfolios versus industry sector portfolios. Early studies simply looked at changing return correlations over time. The simple conclusion that increasing country correlations over time drives superior risk-adjusted portfolios towards diversification across sectors has been increasingly challenged. Our approach is different in that we apply momentum and trend following investing strategies and assess whether it is sectoral or country indices which dominate our portfolios through periods of structural changes and extreme volatility. Diversification via sectors is clearly the best strategy in times of equity market stress. In addition, the application of trend following offers a substantial improvement in risk-adjusted performance compared to traditional buy-and-hold portfolios. The terms momentum and trend following have often been used interchangeably although the former is a relative concept and the latter absolute. By combining the two we find that one can achieve the higher return levels associated with momentum portfolios but with much reduced volatility, tail risk and drawdowns due to trend following. We observe that a flexible asset allocation strategy that allocates capital to the best performing instruments irrespective of asset class enhances this further. Such methodologies offer superior risk adjusted returns, especially through periods of raised market volatility." Source: SSRN

Keywords: Trend Following, Momentum Investing

12/20/13

Permalink 04:46:55 pm, by editor of MarketObservation.com Email , 7 words   English (US)
Categories: Investment










Keywords: Monetary Policy, Stock Market, Quantitative Easing

12/17/13

Permalink 05:21:21 am, by editor of MarketObservation.com Email , 188 words   English (US)
Categories: Central Banks/Government

Financial Times: US Federal Reserve: The Bernanke years, By Robin Harding, Dec. 15, 2013

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.

It was a drizzly day in Washington when Ben Bernanke went to his confirmation hearing in November 2005, but all seemed bright for the US economy. Growth was on track to hit 3 per cent. House prices had another five months left to rise.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights.

The assembled senators felt indulgent towards the modest academic – variously described by the media as bearded, or sometimes whiskered – seated in front of them. “A superb appointment,” said Richard Shelby, the Republican committee chair. “Tremendously impressive,” agreed Chris Dodd, his Democratic counterpart.
read more in the Financial Times

Keywords: Monetary Policy, Fed, Ben Bernanke, US Economy

12/11/13

Permalink 07:44:01 am, by editor of MarketObservation.com Email , 163 words   English (US)
Categories: Investment

WSJ: "2 and 20" Fading, Managers Need Big Assets or Performance to Profit: Citi Prime Finance Survey, Dec. 9, 2013

The business of hedge funds is caught between rising costs and falling management fees, holding little profit for managers who don't perform. That's one key finding from the second annual global survey of the economics of hedge funds in the just-released Citi Prime Finance 2013 Business Expense Benchmark Survey.

According to the survey, the traditional "2 and 20" model of investment manager compensation -- 2% management fee and 20% of the profits -- has declined to fee levels as low as 1.58% of assets under management for all but the largest managers. As a result, hedge fund managers, unlike their counterparts in traditional, long-only funds, barely break even simply collecting fees. For example, after paying expenses, funds with $500 million in AUM realize operating margins of 69 basis points, rising to 82 basis points for a manager overseeing $900 million, survey data show.
read more in the Wall Street Journal

Keywords: Alternative Assets, Hedge Funds, Management Fees, Performance Fees

12/08/13










Kewords: Monetary Policy, Cheap Money, Asset Inflation, Byron Wien, Jeremy Siegel

12/02/13

Permalink 07:15:53 am, by editor of MarketObservation.com Email , 20 words   English (US)
Categories: Investment

Source: BlackRock

go and read more analysis on the BlackRock internet page

Keywords: Returns, Investment Performance, Bonds, Stocks, Dividend Yields

11/30/13

Permalink 08:01:37 am, by editor of MarketObservation.com Email , 160 words   English (US)
Categories: Investment

a positive development as they, by definition, should focus on prosperous long-term development of the firms they invested in.

Dealbook New York Times: Some Big Public Pension Funds Are Behaving Like Activist Investors, Nov. 28, 2013

Activist investors like Carl C. Icahn, Daniel S. Loeb and William A. Ackman are getting deep-pocketed imitators.

Some of the biggest public pension funds, which have sought to influence companies for years, are now starting to emulate these investors by engaging with, and sometimes seeking to oust, directors of companies whose stock they own.

Anne Simpson, director of corporate governance at the California Public Employees’ Pension Fund, the largest United States pension plan with $279 billion in assets, says “board coups” this year that led to the departure of directors at Hewlett-Packard, JPMorgan Chase and Occidental Petroleum show “how shareholder activism is evolving from barbarians at the gate to acting like owners.”
read more in The New York Times

Keywords: Pension Funds, Shareholder Activism, Pension Fund Performance

11/18/13

Permalink 11:34:28 pm, by editor of MarketObservation.com Email , 12 words   English (US)
Categories: Investment

Keywords: Investment Strategy, ETF, Passive Index Funds, Actively Managed Fund, Mutual Funds

11/13/13

Former Morgan Stanley managing director and manager of the Federal Reserve's $1.25 trillion agency mortgage-backed security purchase program, Andrew Huszar, about the backdoor bailout of Wall Street banks:

Wall Street Journal: Andrew Huszar: Confessions of a Quantitative Easer; We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street, Nov. 11, 2013

I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time. read more in the Wall Street Journal

Keywords: Fed, Quantitative Easing, Bank Bail Outs, Bank Recapitalizations, Main Street, Wall Street

http://www.linkedin.com/pub/andrew-huszar/3/3a5/b50

11/11/13

Permalink 06:49:58 am, by editor of MarketObservation.com Email , 47 words   English (US)
Categories: Wisdom, Analysts, Investment, Valuation

Interesting article and charts by Wesley R. Gray, PhD, on the ratio of GDP growth/Corporate Profits, which seems to be of quite importance to investors such as Warren Buffett:

Turnkey Analyst: Buffet's Market Timing Signal: Expensive, Nov. 5, 2013

Keywords: Market Timing, Investor Strategy, GDP Growth to Corporate Profits

11/05/13

Permalink 10:36:32 am, by editor of MarketObservation.com Email , 375 words   English (US)
Categories: Academic, Banks/Investment Banks

Admati, Anat R. and DeMarzo, Peter M. and Hellwig, Martin F. and Pfleiderer, Paul C., Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Socially Expensive (October 22, 2013). Rock Center for Corporate Governance at Stanford University Working Paper No. 161. Available at SSRN: http://ssrn.com/abstract=2349739

Abstract:

"We examine the pervasive view that "equity is expensive," which leads to claims that high capital requirements are costly for society and would affect credit markets adversely. We find that arguments made to support this view are fallacious, irrelevant to the policy debate by confusing private and social costs, or very weak. For example, the return on equity contains a risk premium that must go down if banks have more equity. It is thus incorrect to assume that the required return on equity remains fixed as capital requirements increase. It is also incorrect to translate higher taxes paid by banks to a social cost. Policies that subsidize debt and indirectly penalize equity through taxes and implicit guarantees are distortive. And while debt’s informational insensitivity may provide valuable liquidity, increased capital (and reduced leverage) can enhance this benefit. Finally, suggestions that high leverage serves a necessary disciplining role are based on inadequate theory lacking empirical support.

We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed, for example, by the Basel III agreement is not necessary for banks to perform all their socially valuable functions and likely makes banking inefficient. Better capitalized banks suffer fewer distortions in lending decisions and would perform better. The fact that banks choose high leverage does not imply that this is socially optimal. Except for government subsidies and viewed from an ex ante perspective, high leverage may not even be privately optimal for banks.

Setting equity requirements significantly higher than the levels currently proposed would entail large social benefits and minimal, if any, social costs. Approaches based on equity dominate alternatives, including contingent capital. To achieve better capitalization quickly and efficiently and prevent disruption to lending, regulators must actively control equity payouts and issuance. If remaining challenges are addressed, capital regulation can be a powerful tool for enhancing the role of banks in the economy."


Keywords: Financial Institutions, Capital Structure, "Too Big To Fail"

09/22/13

Permalink 09:29:03 am, by editor of MarketObservation.com Email , 275 words   English (US)
Categories: Technology, Innovation

San Francisco Magazine: The Care and Feeding of a Tech Boom, Sept. 20, 2013

..."Study the roots of our new tech economy, and you’ll find that it differs in important ways from the Internet bubble of the ’90s. That blip was fed by the promise of future billions that we were certain to realize from the web economy. Today’s tech industry, on the other hand, feeds off of three megatrends that are already minting billions by revolutionizing every sector of the global economy, including healthcare, manufacturing, energy, media, and advertising. The first of these trends is the transition from hulking desktop PCs to ubiquitous mobile devices that allow tech firms—most notably Bay Area behemoths Apple, Google, and Facebook—to address their customers’ desires at a proximity never before achievable. The second is the rising urge to incorporate software into every corner of our lives: from booking restaurants (OpenTable), to hailing cabs (Uber), to searching for jobs (LinkedIn), to adjusting our home heating and cooling systems (Nest), to paying for everything (Square, PayPal), to finding a room anywhere in the world (Airbnb). Third is our full-throated embrace of personalized services—from algorithmically determined TV programming (YouTube, Netflix) to geographically targeted advertising (Google, Facebook, Twitter)—that are fueled by ever-larger storehouses of data collected through our mobile gadgets. And all of these forces amplify one another. More mobile devices make for more personal data, which allow for better personalized software that we use more often, which in turn makes mobile devices more attractive—and on and on in a gilded upward spiral." Source: San Francisco Magazine

click here to read the whole article in the San Francisco Magazine

Keywords: Technology, Innovation, Tech Boom

09/12/13

Forbes: There Was Nothing 'Financial' About The 2008 Crisis, Sept. 11, 2013

“‘Your No. 1 client is the government,’ John J. Mack, Morgan Stanley MS +0.75%‘s chairman and chief executive from 2005 to 2009, told current CEO James Gorman in a recent phone call. Mr. Gorman, who was visiting Washington that day, agreed.” – Wall Street Journal, September 10, 2013.

The five year anniversary of the ‘financial crisis’ has predictably generated all manner of commentary about its presumed causes. What’s most unfortunate five years later is that ‘financial’ and ‘crisis’ are still used together. It’s unfortunate simply because despite what you read, the crisis was decidedly not financial, nor was it caused by a crackup in the housing market, nor was it caused by the failure of Lehman Brothers.
read more in Forbes

Keywords: Financial Crisis, Great Depression, Government, Banking Sector, Government and Market Distortions

09/05/13

Permalink 07:36:11 am, by editor of MarketObservation.com Email , 28 words   English (US)
Categories: Innovation

as an Apple user I hoped them to come up with a smartwatch first. Advantages of such watches are obvious. They are the future.

Keywords: Smartwatch, Galaxy Gear

09/01/13

Permalink 09:31:02 am, by editor of MarketObservation.com Email , 73 words   English (US)
Categories: Investment

Huffington Post: The 16 Best Things Warren Buffett Has Ever Said, Aug. 30, 2013

"Rule No. 1: Never lose money; rule No. 2: Don't forget rule No. 1."

"Someone's sitting in the shade today because someone planted a tree a long time ago."

"No matter how great the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant."

read more in the Huffington Post

Keywords: Wisdom, Value Investment

1 2 3 4 5 6 7 8 9 10 11 ... 71 >>

Search

XML Feeds

EXCELLENT BBC FINANCE CRISIS GLOSSARY ________________________________________________________________________________

HEDGE FUND NEWS AND BACKGROUND INFO:

_________________________________________________________________________________

ASSET BACKED SECURITY INDICES:

_________________________________________________________________________________

BIGGEST STOCK EXCHANGES:

ranked according to size

_________________________________________________________________________________

VARIOUS LINKS PROVIDING VALUABLE MARKET INFORMATION:

_________________________________________________________________________________

CORPORATE GOVERNANCE:

_________________________________________________________________________________

BLOGS ABOUT INDUSTRIES:

_________________________________________________________________________________
April 2014
Sun Mon Tue Wed Thu Fri Sat
 << <   > >>
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30      
powered by b2evolution free blog software