Bond Market Bubble? More Like A Central Bank Bubble

By Ben Bennett, Credit Strategist at Legal & General Investment Management As US quantitative easing draws to a close, there is increasing nervousness that the bond market bubble may be about to burst. But the market’s high prices and low yields are not just a problem for bonds, they are a symptom of broader problems […] Read more »

High Frequency Hysteria

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By Stephen Pope, Managing Partner of Spotlight Ideas Any investment is speculative. Speculation is not manipulation. Markets hold politicians to account. Shorting is an essential trading tool. Be wary about a cumbersome restriction on algorithms   The word “Hysteria” has its root in the Latin “hystericus”. It refers to “exaggerated or uncontrollable emotion or excitement” […] Read more »

Outlook For European High Yield Credit

By Louis Gargour, Manager of the LNG Europa Credit Fund Market activity in 2013 supports the rationale for investing in Western European High Yield Credit into 2014 and beyond. The ECB has committed to keeping its benchmark interest rates low for 2014, and the rate cut in November to 0.25% substantiates that view. We view […] Read more »

Hot Topics Amongst Clients of Spotlight Ideas – ECB, France …and Coffee

By Stephen Pope, Managing Partner Spotlight Ideas We publish, with client approval a series of questions that have been raised on several occasions in the past month. Hopefully our answers will prove helpful and maybe add to the take on the contemporary state of the financial markets and economy. This month we start with here […] Read more »

If Germany Wins in Court Europe Will Suffer But the Euro Stands to Gain

By Klaudius Sobczyk, Managing Director of Advanced Dynamic Asset Management GmbH   Europeans can be proud of themselves. They are well on the way to becoming a second Japan. The European Central Bank continues to talk the situation up and refuses to continue to print money.  The German constitutional court is now in charge to decide […] Read more »

Peripheral Europe Sovereign Risk Up Around Month End

By Stephen Lewis, Chief Economist, Monument Securities The euro has performed strongly so far this year.  Since 31 December, its effective rate has risen by more than 2% to stand at its highest since November 2011.  It is back at the level it traded immediately prior to the ECB’s announcing it would extend liquidity to […] Read more »

SEB Bias Towards RV and Macro In Outlook For Hedge Funds

Victor de Oliveira, Portfolio Manager and Head of Investment Strategy, SEB Luxemburg The strong start to the year came to an end in the second quarter. The fading effects of the European Central Bank’s Long Term Refinancing Operation (LTRO, three-year loans at 1 per cent interest) reduced risk appetite, while increasing volatility made the market […] Read more »