The Problem With Structured Notes
Over the past decade, structured investment products, also known as equity- or index-linked notes, have become increasingly common in the portfolios of retail investors. In 2013 alone, more than $40 billion in structured notes were issued. And this is not...
The Truth About The Carry Trade
One of the more popular strategies pursued by hedge funds is the currency carry trade. The strategy involves borrowing (going short) a currency with a relatively low interest rate and then using the proceeds to purchase (going long) a currency...
Liquidity Premium Diminishing
Liquidity can be described as the ability to trade a large number of investments quickly, at low costs and when you want to. Because it is a priced risk, liquidity and its associated price effects are an important aspect of...
Fund Construction Matters
“When I hear ‘smart beta,’ it makes me sick.” So said economist and Nobel Prize-winner William Sharpe after he was asked at a conference last year for his thoughts on strategies of this type. And while much, if not the...
The Investing Signals to Listen To? They’re Personal, Not in the Markets
What happens when we’re driving and we reach a red light? We stop, right? When the light turns green, we hit the gas. If we don’t, it usually doesn’t take long for the driver behind us to start honking the...
