risk

Safe havens decline against backdrop of improved risk appetite; stocks and oil both up over 1%. EZ PMIs and Norwegian GDP both surprise to the upside; attention shifts to Richmond Fed in NY. EM markets supported by flash China PMI; Russia…

US leaders agree on budget deal, but House vote poses event risk ahead of August 2 deadline. Euro zone periphery benefits from improved market sentiment, but remains vulnerable. Equities and EM FX firm today on US news and stronger than…

The economy is complex in the extreme. And what economists tend to do is model it by making a few simplifying and clarifying assumptions. Here’s the problem.

Hoenig, like many Fed leaders from the Reserve banks outside of Washington and the money centers in New York, Boston and San Francisco, is more comfortable with safe and boring banking than the higher risk model that brought the global…

In Montier’ view, “value investing is the only risk-averse way of investing” that addresses tail risk. He identifies, value risk, fundamental risk and financial risk as three main risk characteristics value investing captures. The subtext…

Here’s an interesting note from UBS’ Andy Lees on the background story to the oil market. You may have heard that US President Obama decided to release some of the oil from the Strategic Petroleum Reserve (SPR). This move was bearish for…

Below are extracts of a paper formulated by Thomas Hoenig, the President of the Federal Reserve Bank of Kansas City, to better regulate the US Financial sector. His overarching aim is to isolate core banking activities that are protected by…

To sum up: Non-performing loans look to be a full 10% of Chinese GDP. That’s high. The Chinese government is confronting this writedown problem head-on. While a number of analysts have opinions on the measures just taken, it is far from…

Financial repression leads to investors' leveraging up, moving abroad, moving out on the risk curve or moving into riskier asset classes. Apparently, Pimco is employing all of these strategies. Will it work, though? I say greater risk…