Sir Ronald Cohen, author of Impact, realized at the age of 60 that he did not want his epitaph to say “he achieved 30% per annum returns in his investments”. He had been co-founder and president of Apax Partners, where he managed $50 billion. Currently he chairs the Global Steering Group for Impact Investment, which […]
The Medallion fund earned an annualized return of 66% through summer 2019 before commissions, with no year in losses over 30 exercises. In “The Man Who Solved The Market: How Jim Simons Launched the Quant Revolution”, Gregory Zuckerman, journalist of The Wall Street Journal, tells us about the birth and evolution of Renaissance Technologies, a […]
The imperial city has a very serious pollution problem. Marrakesh, 25 December 2019.- COP , Conference of the Parties, the supreme body of the United Nations Framework Convention on Climate Change, meeting annually since 1995, was in Marrakesh, Morocco, from 7 to 18 November 2016. Three days earlier, on 4 November, the “Paris Agreement” entered […]
“The education of a value investor: my journey of transformation in search of wealth, wisdom and enlightenment”, by Guy Spier, is read in a tug. It is a vital journey, of ethical and philosophical relevance. Spier tells us this journey, since he graduated from Harvard Business School, starting in private capital in New York, where […]
At the beginning of the decade of 1980 banks and lenders began to package mortgages and other predictable cash flows through securities issuance, up to an outstanding balance of three trillion dollars at the end of 2008. For years, in a low interest rate environment, they sold these securities aimed at generating higher returns to investors. But with the bearish spiral of the residential market and escalating leverage toxicity became clear, leading to a lack of liquidity of counterparts. In fact, compensations were based on volume of operations rather than on quality of borrowers or collaterals and many relied heavily on credit-agency ratings, while they had lack of data and experience.
Corporate prestige, as physical health, requires a lot of time and permanent effort, but can be lost easily in a short time.
During the 1980s and 1990s there were numerous periods of instability and financial crises, characterized by increased credit risk, lack of liquidity and volatility in prices of financial assets. In many cases, inflation of certain assets is observed, along with speculative excesses, poor financial practices and weakness in measurement and risk-control systems.
Non-US governments, oblivious to their own policies of cheap money, regulatory or inadequate neglect or mismanagement of local banks, blame their country’s housing market.
At the heat of low interest rates numerous non-banking companies’ divisions arose in the business of high-risk mortgages, as General Electric, H&R Block and banking as British HSBC. At the same time traditional credit packagers as Fannie Mae, Freddie Mac and FHA (Federal Housing Administration) joined investment banks as Sear Steams and Merrill Lynch.
CFA Institute Centre for Financial Market Integrity believes the historically falls in global markets are the result of several factors, including acts or omissions. In many cases the collapse of the financial crisis recalls errors of past crises, including ignorance of risk and widespread use of leverage
Returns since the financial crisis of 2007 have suffered higher volatility -the magnitude of changes in price of an asset in time- with respect to the historical norm
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