MDT: Do quants dream of electric sheep?*
Fast reading Quant investing typically sifts through vast amounts of data to seek investment opportunities. MDT’s use of ‘decision trees’ enhances transparency and prevents decision-making from becoming a data-driven ‘black box’. The team overrides recommended trades if it concludes that the models are not capturing all relevant factors driving the stock’s share price. This […]
Credit investors threatened with tax hike on US income
Fast reading The US is weighing up legislation that could see foreign investors hit with a tax hike. In the event that section 899 is triggered, entities from “discriminatory foreign countries” would be hit by a tax increase on US income of up to 20%. The proposal raises the possibility of a slowdown in foreign […]
South Korea’s new dawn
market snapshot
Fed may do little in this push-me-pull-you market
It’s become a cliché but bond markets remained volatile in May, with investors ultimately discounting the latest tariff tantrums and re-embracing risk. US Treasury yields spiked once again as the federal budget and deficit took centre court, but this time other forms of fixed income investment (asset-backed, corporate, international and municipals) benefitted by comparison to […]
Riding the storm
Video transcript How have we navigated the volatility? ‘Liberation Day’ brought a tonne of volatility and uncertainty to the markets, and in trying to navigate through that we set up a series of five milestones to help confirm our bullish stance. The first thing we wanted to see was more dovish trade talk, talk about […]
Trump’s tariff rollout hits roadblock
market snapshot
What does the US debt downgrade mean?
market snapshot
The ECB’s road ahead
navigating the certain uncertainties
How should credit investors navigate such an uncertain backdrop?
Fast reading Uncertainty stemming from the Republican administration’s economic policy has undermined confidence in capital markets. Credit ratings agency Moody’s has downgraded US sovereign debt to Aa1 from Aaa. Notwithstanding a reset on tariffs with China, many market drivers – for lenders, borrowers and investors – are in a holding pattern until an element of […]
What word best encapsulates the current economic environment?
Video transcript The word that best describes economic conditions right now has to be ‘uncertainty’. We hear it frequently on earnings calls from investors and across the capital markets, from all participants. By way of evidence, we searched the word uncertainty in the Fed’s ‘Beige Book’. The ‘Beige Book’ is a summary of economic conditions […]
