Webcast : Emerging Market Debt: Diversification and Yield Tuesday 4th October, 14:00 UK/15:00 CET

Emerging Market Debt: Diversification and Yield

When:
Tuesday 4th October, 14:00 UK/15:00 CET

Presented by:

– Nicholas Hardingham, CFA, Emerging Market Debt Portfolio Manager and Analyst, Franklin Templeton Fixed Income

Moderator:
– Brendan Maton, IPE

Register now >>
Emerging Market Debt: Diversification and Yield

In the search for yield outside traditional government bonds, Emerging Market Debt (EMD) has been a significant beneficiary of this reallocation.

Much of this capital has been placed into more traditional EM issuers which in itself concentrates investors’ risks. Given the significant difference in correlation of hard, local and corporate EMD versus traditional fixed income, an active and blended approach could provide investors with diversification from core fixed income holdings whilst capturing the higher yields on offer.

Register now >>
Nicholas Hardingham, CFA, Emerging Market Debt Portfolio Manager and Analyst, Franklin Templeton Fixed Income
Nicholas Hardingham is a portfolio manager and analyst within the EMD Opportunities strategy group, based in London. Previously Mr. Hardingham worked as quantitative research analyst within the Global Fixed Income Group.

Prior to joining Franklin Templeton in 2002, Mr. Hardingham worked as a performance analyst at T. Rowe Price International.

Mr. Hardingham is a Chartered Financial Analyst (CFA) charterholder and earned a B.Sc. in pure mathematics from Imperial College, London.

Rising Rates Revisited

The prospect for and ramifications of rising interest rates have surfaced time and again in recent years. Whether and when the Fed will raise rates next is anyone’s guess. But as we’ve noted before, the correlation between higher interest rates and equity declines has grown tenuous in recent history.  Since 1991, the S&P 500 has Read more

NEGATIVE RATES: DEALING WITH AN UNORTHODOX EXPERIMENT – Sept 28, 11am ET

WHAT: Live Q&A: Negative Rates
DATE: Wednesday, September 28
TIME: 11am (ET) | 8am (PT) | 4pm (BST)

REGISTER NOW

NEGATIVE RATES: DEALING WITH AN UNORTHODOX EXPERIMENT

Once thought to be impossible, negative interest rates are now common in many European currencies.

This presents a challenge for pricing and risk managing some rates derivatives and bonds with models that assume non-negative rate dynamics. Russell Goyder, Director of Quantitative Research and Development at FINCAD discusses the context for negative rates and the best approaches to modeling them and understanding their business impact, including:

  • Model requirements for negative rates
  • Building curves in a negative interest rate environment
  • Modeling swaptions: vol cube and SABR modeling, pros and cons Interest rate modeling beyond swaptions

EVENT SPEAKERS

Russell Goyder

Director of Quantitative Research and Development at FINCAD

Mark Gibbs

Chief Software Architect at FINCAD

John Hull

Professor of Finance
Co-Director of the Rotman Master of Finance Program
University of Toronto, Rotman School of Management

Making Sense of Malformed Global Bond Markets, TUESDAY, OCTOBER 18, 2016 : 1:00 PM – 5:00 PM EDT

5th Annual Global Fixed Income Forum
Making Sense of Malformed Global Bond Markets

TUESDAY, OCTOBER 18, 2016 : 1:00 PM – 5:00 PM EDT
Register 
Today’s bond markets couldn’t be more distorted: The U.S. equity market is reaching all-time highs while some bond yields are so low that countries with negative policy rates cumulatively represent nearly 25% of global GDP. How do fixed income investors reconcile it all?

Join us and our panel of leading industry experts and practitioners to uncover existing risk management and investment opportunities in this unpredictable global fixed income market.

Arunma Oteh, Vice President and Treasurer of The World Bank, will kick off the afternoon with a keynote address on the advancements of emerging market infrastructure.

Topics will also include:

Uncovering the reasons behind today’s unprecedented negative yields
The effects of energy and volatility on corporate bond and preferred performance
Risk management strategies to capture higher yields, including using ETFs as tools to draw out liquidity
Global alternatives to core fixed income: making a case for infrastructure, green bonds, and smart beta

Webinar : CoCo bonds and their embedded risks, 27th Sept, 2PM BST

A Contingent Convertible or CoCo bond is a high yield debt instrument that converts into equity or writes down as soon as the issuing bank gets into a life threatening situation. The exact trigger is typically in terms of a capital ratio (CET1) and is often accompanied with a regulatory trigger.

Date: 27th September 2016   |   Time: 2pm (BST)   |   Duration: 30 minutes

Register For The Webinar Here

Wim Schoutens, Professor Of Financial Engineering at University of Leuven

World Bank – CII : Masterclass on ‘Credit Reporting’, Tue, Sep 27, 2016 2:30 PM IST

In a country’s financial infrastructure, ‘Credit Reporting’ is a vital part and is also an activity of public interest. Studies in developed countries suggest that in an economy, the presence of a robust credit information system helps the spread of outflow of finances.

MSMEs in India are yet to be fully represented in credit bureaus. They are yet to leverage the benefits offered by credit bureaus and credit rating agencies to build, maintain and enhance their financial track records and credit standing.

To enhance the awareness about Credit Reporting, the SME Finance Facilitation Centre of CII is organizing an online session on ‘Credit Information Awareness Training’, in collaboration with the World Bank Group. In this session, a team from the World Bank Group would disseminate this knowledge by:

  • introducing new knowledge on this subject
  • helping to understand the nuances
  • assisting MSMEs to create a financial attitude for themselves

Register now

China’s credit binge increases risk of banking crisis, says watchdog

The Bank for International Settlements says the signs point to a problem in the next three years as debt hits 255% of GDP. China’s huge credit binge has increased the risk of a banking crisis in the world’s second biggest economy in the next three years, according to global financial watchdog. Read more

Assets may be overvalued, BIS reports

Global asset prices are too high given their less-than-stable foundations, the Bank for International Settlements warned in its quarterly review. “The apparent dissonance between record low bond yields, on the one hand, and sharply higher stock prices with subdued volatility, on the other, cast a pall over such valuations,” according to the report.

Read more

Webcast : Emerging Market Debt: Diversification and Yield, Tuesday 4th October, 14:00 UK/15:00 CET

Emerging Market Debt: Diversification and Yield

When:
Tuesday 4th October, 14:00 UK/15:00 CET

Presented by:

– Nicholas Hardingham, CFA, Emerging Market Debt Portfolio Manager and Analyst, Franklin Templeton Fixed Income

Moderator:
– Brendan Maton, IPE

Register now >>
Emerging Market Debt: Diversification and Yield

In the search for yield outside traditional government bonds, Emerging Market Debt (EMD) has been a significant beneficiary of this reallocation.

Much of this capital has been placed into more traditional EM issuers which in itself concentrates investors’ risks. Given the significant difference in correlation of hard, local and corporate EMD versus traditional fixed income, an active and blended approach could provide investors with diversification from core fixed income holdings whilst capturing the higher yields on offer.

Register now >>
Nicholas Hardingham, CFA, Emerging Market Debt Portfolio Manager and Analyst, Franklin Templeton Fixed Income
Nicholas Hardingham is a portfolio manager and analyst within the EMD Opportunities strategy group, based in London. Previously Mr. Hardingham worked as quantitative research analyst within the Global Fixed Income Group.

Prior to joining Franklin Templeton in 2002, Mr. Hardingham worked as a performance analyst at T. Rowe Price International.

Mr. Hardingham is a Chartered Financial Analyst (CFA) charterholder and earned a B.Sc. in pure mathematics from Imperial College, London.

Register now for the webcast >>

Live Webcast : Why Weight For Commodities? Sept 29, 830pm HKT

10th Annual Commodities Seminar
Why Weight For Commodities?

Register now

Given today’s shifting risk climate, it’s time for a fundamental look at how commodities may fit into risk management strategies.

Join us for the 10th anniversary Commodities Seminar and hear current thinking on evaluating commodity indices as tools for diversification, inflation protection, and accessing tactical opportunities.

Our keynote address will analyze the overall performance of the commodities market against the backdrop of a slowing Chinese economy.

Industry experts will explore topics including:

The risks that matter from east to west, with a focus on elections in America, the Chinese economy, and Brexit
Using real assets to seek inflation protection and diversification even when risky assets are correlated during crises
Perspectives on commodities sectors from the buy and sell side
Accepted for 3-hour CFA® and CPD credits

Mckinsey : The evolving role of credit portfolio management

Credit portfolio management (CPM) is a key function for banks (and other financial institutions, including insurers and institutional investors) with large, multifaceted portfolios of credit, often including illiquid loans. Historically, its role has been to understand the institution’s aggregate credit risk, improve returns on those risks—sometimes by trading loans in the secondary market, and hedging—and identifying and managing concentrations of risk. In contrast to traditional origination and credit risk-management functions that look only at individual deals or borrowers, CPM looks across the entire credit book. Read more

Disclosure Requirements of Non-GAAP Error Corrections?

In a series of posts, we have discussed mounting evidence that, with 90% of U.S. public companies using custom metrics, non-GAAP presentations are becoming a de-facto alternative accounting system. In a May speech, Mark Kronforst, chief accountant of the SEC’s Division of Corporation Finance, stated that SEC requirements to avoid giving undue prominence to non-GAAP results were “not working”.

Read more

 

Webcast : Asia-Pacific Sector Insights: Korea , September 20, 2016 Singapore/Hong Kong 2.30 p.m.

Asia-Pacific Sector Insights:
A Credit Quality Recovery For Korean Corporates Is Unlikely To Be Uniform

Live Webcast And Q&A

APImgAP_RegisterNow117X35-English

Date & Time:

Tuesday
September 20, 2016

Singapore/Hong Kong
2.30 p.m.

Japan/Korea
3:30 p.m.

 

Please join us for a webcast and Q&A to discuss the credit outlook on the Korean corporate sector.

Key discussion points:

  • How sustainable would the recent improvement in the overall creditworthiness of the Korean corporate sector be?
  • Which sectors are seeing more improvement than others and what are the key drivers?
  • What would be the key drivers for the credit quality of Korean Government-Related Entities?

Speaker/Speakers:

  • Sangyun Han, Director, Corporate Ratings, Korea
  • JunHong Park, Associate Director, Corporate Ratings, Korea
  • Kim Eng Tan, Senior Director, Sovereign & International Public Finance Ratings, Asia-Pacific (Q&A)

Moderator:

  • Christopher Yip, Senior Director & Analytical Manager, Corporate Ratings

Register now

This webcast is provided on a complimentary basis. You will receive a link to access the replay as long as you register.

 

How well do you know your IFRS Standards?

The IFRS Foundation is inviting people to test their knowledge of IFRS Standards and their use around the world, today releasing an updated version of the popular online IFRS Quiz.

The quiz is based on the 2016 Pocket Guide to IFRS Standards: the global financial reporting language. It provides students, educators and other interested parties with a free-of-charge resource to assess their knowledge of IFRS Standards, the IFRS Foundation structure, and the standard-setting process.

First launched in 2014, the quiz is available in both English and Spanish and has been taken more than 45,000 times. The updated version has been revised to include, among other things, the requirements of new and amended IFRS Standards such as IFRS 15Revenue from Contracts with Customers and IFRS 16 Leases.

The IFRS Quiz is available here.

Excellent account of the super-Lehman bankruptcy of 150 years ago (Overend Gurney)

Excellent account of the super-Lehman bankruptcy of 150 years ago (Overend Gurney)

The failure of Overend Gurney — a discount house which had been larger than its three next largest competitors combined — sent shockwaves through the financial system in
May 1866. The seeds of its demise had been sown many years earlier. Despite its profitable bill broking business, Overend Gurney had been on the brink of failure for some time, incurring enormous losses from the bad loans it had extended with little credit risk assessment.

India appears to be an outlier in terms of its steep and steepening yield curve

There’s a lot of discussion of the flattening of the yield curve, and what it portends, in the US (see this post, Irwin/NYT). Interestingly, yield curves are flattening around the world, even in some emerging markets.

Read more: http://econbrowser.com/archives/2016/07/decomposing-changes-in-term-spreads-around-the-world

Mean Reversion: Gravitational Super Force or Dangerous Delusion?

Mean Reversion: Gravitational Super Force or Dangerous Delusion?

In my last post on the danger of using  single market metrics to time markets, I made the case that though the Shiller CAPE was high, relative to history, it was not a sufficient condition to conclude that US equities were over valued. In the comments that followed, many disagreed. While some took issue with measurement questions, noting that I should have looked at ten-year correlations, not five and one-year numbers, others argued that this metric was never meant for market timing and that the real message was that the expected returns on stocks over the next decade are likely to be low.

Read more

Are bonds the new equities, and equities the new bonds?

A year and a half ago, I wrote a blog post about loss aversion and negative interest rates. That post argued that if prospect theory is true, then the most loss averse investors who traditionally invest in bonds would now become risk seeking when confronted with certain loss of principal induced by negative interest rates. I also raised the possibility that the most loss averse investors would switch to equities and the less loss averse investors would stay in bonds. As we look around at investor behaviour under negative rates, we can see evidence of loss aversion at work though perhaps not quite in the way that I hypothesized earlier. Read more

New Delhi : Moody’s & ICRA Briefing: India’s Macroeconomic, Sovereign & Banking Outlook , 20 September 2016

Moody’s & ICRA Briefing : India’s Macroeconomic, Sovereign & Banking Outlook

Gradual Reforms in Mixed Economic Environment Amid Bank Solvency Challenges

New Delhi,  Tuesday, 20 September 2016 7:00PM – 8:00PM

The Taj Mahal Hotel, New Delhi

Registration starts at 6:30PM

Cocktails and Dinner start at 8:00PM

Discussion Items

·         Do the macroeconomic, fiscal and monetary reforms show only incremental progress?

·         What are the implications of recent developments on the economy and fiscal metrics?

·         Are Indian banks close to cleaning up their balance sheets?

·         How can the banks resolve their solvency challenges?

·         Can the banks raise capital through masala bonds or equity?

 

Speakers

Atsi Sheth, Managing Director, Sovereign Risk Group, Moody’s

Marie Diron, Senior Vice President, Sovereign Risk Group, Moody’s

Alka Anbarasu, Vice President – Senior Analyst, Financial Institutions Group, Moody’s

Aditi Nayar, Vice President & Senior Economist, ICRA

Karthik Srinivasan, Senior Vice President, Co-Head Financial Sector Ratings, ICRA

Registration is required. To register, please click HERE.

Sovereign Bonds Aren’t Worth It, Swiss Re Says

The European Central Bank has turned government bonds into one of the riskiest asset classes, prompting Swiss Re AG to move more of its investments into corporate debt, according to the reinsurer’s chief investment officer.

“If you’re looking for a bubble, here you go,” CIO Guido Fuerer said in an interview in Zurich. “With government bonds, you’re not adequately compensated for the risk you’re taking.”

Read more