US This week U.S. stocks rose with S&P 500 gaining 1.56% and Nasdaq Composite 2.35%, closing at 3,380.16 and 9,623.58 respectively, these levels marked records for both indices. U.S. market surged relative to its peers as a result of investors beliefs for American market to be the least affected by Read more…
In this article, we will analyze the upcoming Democratic Party Primaries for the 2020 US Presidential elections from a markets point of view. We will start by introducing the Democratic Party primary system for electing the Democratic Party’s Nominee who will face President Trump on the 2020 elections, after introducing Read more…
US US bill supporting pro-democratic movements in Hong Kong has caused a negative reaction of China, however, China avoided any direct measures related to trade. Sanctions are going to be introduced on US human-rights organizations and US Navy ships port visits would be halted. The tension between two nations increase: Read more…
An overview of inflation interpretations In the following article, we are going to examine the current framework of monetary policy – inflation targeting – with a focus on the evolution of the inflation process Post-Bretton Woods and its effects on the current regime of price stability. In the post-war era, Read more…
US The Thanksgiving holiday was accompanied by record highs on Wall Street: a beat in US GDP growth and – this never gets old – positive comments from President Donald’s Trump about a closing on the final stages with a partial trade deal with China lead to a bullish sentiment. Read more…
We gave a brief introduction to put writing strategies already earlier this semester. We since thought about possible modifications of such strategies and their effects on return characteristics and return predictability. The positive returns of put writing strategies can be motivated from risk premia, as we show in the first Read more…
Real estate is traditionally associated with large capital expenditures and not a high amount of liquidity. Hence, the sector is usually reserved for long-term investments by high net worth individuals. Even more so, commercial use buildings are out of reach for most private individual’s pockets, making developers and other large Read more…
Introduction In this article, we will try to provide an insight on green bonds, a quickly growing new star of impact investing trends in the world. A total of US$580bn in green bonds were sold up to the year 2018, and at least another US$170bn more are expected to be Read more…
In this article, we introduce distressed debt securities. Then, we investigate what are the problems of valuing a company in financial distress and how we can address those problems. Finally, we present some investment strategies that can be applied when a company is financially distressed. Overview Distressed companies are companies Read more…
US Last week the S&P500 was slightly down by 0.19% and closed the week at 3110,29 points. The index remained above the 3100 threshold while the yield on the US 10 year treasury was down 6 basis points at 1.774. The US market was once again driven by the phase-one Read more…
US The Dow Jones Industrial Average crossed the 28k mark with a close at 28,004.89 on Friday, recording a weekly gain of 1.2%. The S&P 500 closed at 3,120.46 up 0.9% w-o-w. These numbers outline a 6th consecutive week of gains for the index – for the first time in Read more…
Following the article from last week, we now investigate the Inflation Risk Premium. We start by introducing the role inflation plays in monetary policy decisions and what are the mechanics of the Inflation Risk Premium, which is one of the most important drivers of market-based inflation rate. Then we analyse Read more…
At the beginning of a new election term, Argentina finds itself in another economic crisis. After Alberto Fernández, a centre-left opposition leader, defeated president Mauricio Macri in election primary this August, the Argentine peso lost 33% of its value in three days, hitting a new record low. But this was Read more…
US The rally in the U.S. markets continued this week, sustained by the optimistic outlook on the resolution of the US-China trade disputes. The S&P 500 and the Nasdaq Composite were both up 0.85% w-o-w, closing at 3,093.08 and 8,457.31, respectively. The Dow Jones Industrial Average recorded a weekly gain Read more…
Introduction Over the past ten years, Germany has always been the leading European country in terms of economic growth. Notwithstanding a series of emergencies arising from Southern Europe, such as the Greek government-debt crisis and the Italian political instability, the federation was able to deliver an impressive economic performance, corroborated Read more…