– ESG investing requires balancing mission and returns. – Trillions of dollars flowed into ESG investments during the pandemic. – Insurance companies are taking a strategic approach to ESG. – New tools and approaches are needed for effective ESG integration. – Corporate reputation is a leading motivator for ESG engagement. – Insurers focus on opportunity and participation in ESG. – … Read More

Key Points: Calling the equity risk premium a fear premium can change our perspective on so-called anomalies in the market. Risk is not the only factor contributing to the equity risk premium, and other factors such as fear and market inefficiency may play a role. The equity risk premium is observed to be large, but the question remains as to … Read More

Inflation is a complex and often misunderstood economic phenomenon. While it was once believed to be driven solely by monetary factors, there is now a considerable debate about its root causes and how to accurately measure it. In recent months, inflation has become a top concern for US voters, with the personal consumption and expenditures (PCE) index showing a significant … Read More

Key Points: Rising interest rates can have a negative impact on asset values, particularly in fixed-income markets However, certain hedge fund strategies, such as Commodity Trading Advisors (CTAs), reinsurance, and higher turnover relative value fixed income, can benefit from higher interest rates CTAs can take advantage of increased potential returns due to the inherent leverage in their investment instruments Reinsurance … Read More

– Global private capital firms are adopting strategies similar to corporate conglomerates, consolidating market power and diversifying economic risks. – Private equity firms are building product lines that are adjacent to their traditional buyout activities, creating financial conglomerates. – The corporate conglomerate model in the past led to failure due to the challenges of managing complex businesses and the lack … Read More

Key Points: 1. Barrie Wigmore provides a comprehensive analysis of the financial crisis of 2008 based on his experience as an investment banker. 2. The crisis was primarily caused by shockingly high levels of leverage, particularly in government-sponsored enterprises like Fannie Mae and Freddie Mac. 3. The author presents compelling data showing that these institutions were exposed to the weakest … Read More

Key Points: US inflation has reached a 40-year high at 8.5% Covid-19 supply chain issues and the Russia-Ukraine war have caused energy prices to rise by 32% Food prices are also up 8.8% – the largest jump since 1981 The US Federal Reserve has started a hiking cycle to curb inflation, raising the federal funds rate by 25 basis points … Read More

Contrary to popular belief, equities are not necessarily riskier than “safe” assets like US Treasuries. While bonds may seem safe, they can produce awful returns for investors over both short and long-term periods. Equities have the potential to weather inflationary storms better than bonds, as businesses can adapt and evolve. Over the long run, equity markets consistently outperform cash and … Read More

Technology has played a significant role in increasing investor confidence in financial services. The use of technology in finance enhances trust in both the execution of transactions and the relationship between investors and advisers. Tech integration in finance improves access to financial markets, promotes representative equality, and counters the trust divide among different types of investors. Digital payment providers and … Read More

Investment performance is evaluated based on risk-adjusted returns. However, as financial markets become more competitive, private capital fund managers have developed methods to reduce risk while maintaining or enhancing their returns. These methods are categorized into two main parameters: controls and economics. So, how do these control mechanisms work? Portfolio Oversight Tightly monitoring portfolios to reduce investment risk is a … Read More