In August 2022 it became mandatory for IFMs (ManCos and AIFMs) to integrate Sustainability Risk in their risk management. The modified level 2 directives and regulations concerning UCITS and AIFs specified this new responsibility which is aligned with SFDR and the EU...
Exegesis is usually reserved for religious scholars trying to extract the last drop of meaning from sacred texts. Most of the sacred texts of the ESG are accompanied by detailed instructions on how to understand the words. Not so with two lines of the SFDR Article 6 –...
Lately, the US Federal Reserve has acknowledged having misjudged the timing, size and staying power of inflation and consequently accelerated monetary tightening. Should the broader finance market have a similar moment of introspection, the ongoing asset re-pricing...
Cryptos have seen significant losses. Readers of this column (blog Mar 2021. Jan 2022) will know that we are not the slightest surprised. We do, however, believe it is necessary to outline how the movements in cryptos are simply part of something much larger. Pricing...
Into a portfolio squeeze, eye’s wide shut? Liquidity risk to investors balance sheet is on the rise. Should inflation stay sticky and Central banks accelerate monetary withdrawal - will investors then find themselves in a double whammy, caught between skyrocketing...
An invisible portfolio risk To most market participants, financial risk is like talks about the climate crisis, its only “real” when the sea level reaches your living room. Macroeconomic risk is now rising as Central Banks are stepping up efforts to dismantle 13...
Financial market risk is rising. Central banks are stepping up efforts to dismantle 13 years of massive disaster stimulus programs. Portfolio risk is increasing, as stocks and bonds from start 2022 move in sync, a risk only visible to the naked eye when both drop...
Central bankers and the untractable problem of QE This year’s meeting of the world’s central bankers in Jackson Hole takes on a particular importance. Central banks face the unique challenge of beginning the long goodbye to the QE programmes. Nervousness in the...
Cryptocurrencies are hot! Upon closer inspection, they are a bad idea coupled with a brilliant technology. The technology will be broadly applied and even accepted by central banks. Existing cryptocurrencies are less likely to get this seal of approval. For good...
Inflation is getting a lot of airtime these days. Bond yields are increasing rapidly, and much ink is spilled on guessing whether inflation or a rapid return to growth is the culprit. Inflation will affect all other asset in not-so-simple ways. Asset allocation...