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Highlights An increase in the "synthetic" supply of bitcoins via financial derivatives, along with the launch of bitcoin-like alternatives by large established tech companies, will cause the cryptocurrency market to collapse…
Highlights Chart 1Bond Bear On Pause?  The start of a new year often brings optimism and nowhere is this more evident than in economic projections. In three of the past four years (2017 being the exception) Bloomberg consensus…
Recommended Allocation  Highlights We are late cycle. Strong growth could turn in 2018 from a positive for risk assets into a negative. More risk-averse investors may thus want to turn cautious. But the last year of a bull run…
Special Report Dear Client, I am currently traveling in Europe visiting clients. This week, in lieu of a regular report, I am sending along a research report written by my colleague at BCA Global Asset Allocation. The topic covers one of the more…
Special Report Highlights Catastrophe bonds ("cat bonds") have recently been receiving a lot of investor attention because, after this summer's large hurricanes, they are now attractively priced. We explain the mechanics of this market…
Highlights Chart 12017 Bond Returns  Treasuries sold off for the third consecutive month in November (Chart 1), and with Congress about to deliver tax cuts and core inflation showing signs of bottoming, the bond bear market is…
Highlights A more bearish backdrop for bonds, led by the U.S.: Faster global growth, with rebounding inflation expectations, will trigger tighter overall global monetary policy. This will be led by Fed rate hikes and, later in 2018,…
Highlights China stands out as the most likely candidate to send negative shock waves through EM and commodities in 2018. Granted the ongoing policy tightening in China will likely dampen money growth further, the only way mainland…
Special Report Highlights Junk & The Yield Curve: The flat yield curve increases the risk of a sell-off in junk bonds. The most likely scenario is that higher inflation steepens the curve and mitigates this risk, but if inflation fails to respond…

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