Leverage fears undermine ‘myth-making’ central banks
With central banks loosening their belts so much comes the risk of policy makers getting caught with their trousers down.
Analysis
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The world will ban commission within five years, says JPMAM
Regulation is moving at such a fast pace that within five years all financial services markets around the world will ban commission and implement an RDR-like regime, Jasper Berens, head of UK funds at JP Morgan Asset Management has predicted.
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Another end of summer blip or something much bigger?
The end of last week and start of this has had a familiar feel about it as the point at which summer turns to autumn has once again seen investors fretting.
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Panama looks to draw a line under Mossack Fonseca data leak
Panama is planning to take action against those accusing it of being a tax haven, as the country continues its efforts to draw a line under the Panama Papers data leak that saw millions of documents stolen from law firm Mossack Fonseca.
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ECB goes into holding pattern
The European Central Bank decided to stick rather than twist today as it announced the deposit rate has been held at -0.4%, the refinancing rate held at zero, and the details of its €80bn per month quantitative easing programme are unchanged.
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Negative rates destroy capitalism, says Gross
Not only do zero or negative interest rates fail to provide an “easing cushion” in a recession, but they destroy capitalism’s business models, according to Bill Gross of Janus Capital.
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Asset managers prepare for government bond bloodbath
With government bond yields in developed markets at record lows, asset managers are more pessimistic than ever about return prospects for the asset class.
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BoE cuts rates to 0.25%, turns on QE tap
The Bank of England’s monetary policy committee has cut interest rates to 0.25%, and committed to a new term funding scheme to “reinforce the pass-through” of the decision into the broader market.
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Zero-fee funds? Be careful what you wish for
Talk of a 0% fee for passive investing is an enticing prospect, but as core funds become cheaper so groups are encouraged to over-complicate the satellite.
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Investor confidence plummets after Brexit vote
The British vote for Brexit has seriously affected the confidence of institutional investors across the globe. In July, State Street’s Investor Confidence Index dropped to such an extent that institutional investors globally are now decreasing their allocation to risky assets.
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The Fed is running out of room to manoeuvre
This week’s Federal Reserve meeting presents a particularly difficult set of circumstances to the Federal Open Market Committee.
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Too many cooks spoil the broth – star managers do best
When an equity fund run by a single manager takes an extra manager on board, portfolio concentration decreases and performance goes down. That’s the main conclusion of fresh research published by the CFA Institute.