Liquidity

Rate hike fears – are they warranted?

Thanks to the extensive forward guidance of the world’s major central banks, an interest rate hike by either the Fed or the Bank of England would not take investors by surprise. However, short-term consequences could still be grave, Bank of England Governor Mark Carney has reportedly warned.

August 17, 2015
The ETF snowball effect: Are active managers being wiped out?

Exchange-traded Funds make trading more expensive, because they reduce liquidity of the underlying stocks in the ETF. This doesn’t only compromise investors, who are confronted with higher costs, but also makes markets less efficient. These are the main conclusions of a study conducted by three scholars from the United States and Israel*, based on data…

August 10, 2015

Rate hike fears – are they warranted?