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Risk

Coronavirus, climate change parallels

The lackadaisical response by the United States to the coronavirus crisis is indicative of broader risk management issues and comparable to the country’s anaemic response to climate change according to risk expert, Bob Litterman.
Risk

Fed’s open ended move not enough

The US Federal Reserve’s decision to make its treasury bond-buying program open-ended will not be enough to ease the  extreme liquidity crisis despite Wall Street rallying on the news, according to Campbell Harvey, finance professor at Duke University.
Equities

Emerging markets vulnerable

Investors have pulled $83 billion from emerging markets since the beginning of the COVID-19 crisis, the largest capital outflow ever recorded, and the IMF and the World Bank are calling on G20 countries to show relief in dealing with their emerging market counterparts.
Asset Allocation

CIOs ride the corona storm

Even for long term investors who pride themselves on the big picture and horizons stretching far into the future, the unprecedented change of recent weeks is hair-raising. Enough liquidity on hand to take advantage of buying opportunities once they arise and comfortably pay benefits is crucial. We look at the strategies of investors around the world in response to the market conditions.
Credit

Coronavirus could trigger credit crisis

A former adviser to the US Federal Reserve, Danielle DiMartino Booth, said increased volatility in bonds and turmoil in the money markets from the outbreak of the coronavirus could signal a looming credit event despite the Fed’s latest bid to inject liquidity into the system.
Equities

Time for a coordinated approach

The US Federal Reserve has fired its last round of ammunition, cutting interest rates to zero, in a move that continues to see it play from the monetary policy songbook. Some market commentators doubt whether it will be enough to prop up markets, raising the question of whether it is finally time for a more coordinated fiscal and monetary policy approach.
Equities

Former Trump adviser: recession coming

Kevin Hassett, the former economic adviser to US president Donald Trump, has warned that the chance of the global economy falling into a deep recession from the coronavirus outbreak was “pretty close to 100 per cent.”
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