05/02/2005
Credit default swap-based investment products for affluent investors are now available. These give investors synthetic exposure to corporate credit, without the interest rate risk inherent in cash credit investments such as bonds or collateralized debt obligations. Should they be part of my investment strategy?
Institutions are crowding out individual investors in hedge funds. According to a report by investment consultancy Casey Quirk & Associates, they will comprise 50 percent of net new investment flows by 2008, up from less than 10 percent in 2001. How will this affect my access to the best funds?
Russian goods are as uncompetitive today as they were before the 1998 ruble crisis, according to German Gref, the country’s economic, trade and development minister. Gref warned that inflation soared to 3.9 percent in the first two months of the year, burdening the economy further. In light of this grim prognosis and the ongoing political uncertainty, how should I position my investments in Russia?
A dangerous bubble threatens the private equity market, according to Mark Anson, the chief investment officer of CalPERS—one of the world’s largest private equity investors. Tightening credit conditions and competition from hedge funds could pop this bubble, Anson said recently at an industry conference in Geneva. Are his concerns warranted?
At least someone is benefiting from Sarbanes-Oxley. KPMG says its clients’ attempts to comply with the law have boosted its audit and advisory revenues. With extensive changes to international accounting and reporting standards on the horizon, how can I minimize Sarbanes-Oxley compliance costs at my own firm and at those in which I invest?
The desperation of high yield investors has reached heights not seen since the late 1980s. Those scrambling for yield at any cost are snapping up pay-in-kind note offerings—perhaps one of the most toxic financial instruments ever designed. These notes pay coupons in additional notes rather than in cash. Does this mean the high yield market is ready to crash? What is my exposure if it does?
Japan lapsed into recession last year—its fourth in the past 13 years—according to figures its government released in February. Is there any hope for the country, or should my investment strategy in Asia be strictly ex-Japan?
Lending rates continue to ascend, with three-month dollar Libor hitting 2.92 percent at the end of February. Will my leveraged portfolio positions continue to perform in a higher rate environment, or is it time to unwind them?
Fears of encountering conflicts of interest between its private equity fund and its banking clientele spurred JP Morgan Chase to spin off most of the former in March. Will other firms follow suit? What does this mean for the funds in which I invest?
The dollar tanked after Korea’s central bank announced that it plans to diversify its foreign currency reserves. Because the central banks of Korea, Japan, China and Taiwan are the biggest sources of demand for the greenback, which they use to buy U.S. Treasuries, what will this mean for the dollar and U.S. interest rates?