Viewpoints on Current Issues
Rising Uncertainty for China
Standish comments on China's challenges transitioning from an export-driven model of growth to one based more on domestic consumption, while seeking to reform its financial system and social safety net.
Is Hedging the New Diversification?
ISSG Senior Investment Strategist Bob Jaeger discusses the differences between diversification and hedging, warning that investors sometimes underestimate the costs of hedging, while overestimating the protection provided.
Burnin' Down the House: Straight Talk on Tail Risk
ISSG Senior Investment Strategist Ralph Goldsticker argues there is no portfolio equivalent of fire insurance that will protect all investors at the same time for a reasonable price. He discusses how tail risk hedging works, the trade-offs involved, and how the costs are determined.
Private Market Opportunities in Distressed Debt
Private equity specialists from Siguler Guff discuss historic opportunities in distressed debt, as the unwinding of the huge debt overhang in advanced economies is leading to pockets of forced selling at depressed valuations.
Real-Return Investing in a Volatile World
Amid heightened volatility, Newton argues real return strategies have greater flexibility and range than benchmark-constrained approaches to seek opportunities across asset classes and regions as conditions change.
Fixed Income Absolute Return Amid Sovereign Debt Uncertainty
Paul Brain, Newton's investment leader for fixed income, and Colm McDonagh, head of emerging market fixed income at Insight, discuss the potential benefits of fixed income absolute return approaches against the backdrop of low interest rates, heightened market volatility, and sovereign debt concerns.
Life in the Time of Debt: Opportunities and Risks in an Age of Global Rebalancing
Investment professionals from across BNY Mellon Asset Management's global boutiques share their independent perspectives on the future of markets and economies in a historic period of global deleveraging, rebalancing and resetting.
Potential Implications of a U.S. Credit Event
Investment professionals from Standish believe the U.S. Congress will ultimately raise the debt ceiling, but discuss the potential implications of a credit default on the US economy and global financial markets.
The Impact of Japan's Crisis on the Global Power Supply and Beyond
The Boston Company looks at the possible spillover effects from Japan's recent crises on global energy markets, basic materials markets and manufacturing.
Taking the Pulse of Inflation Around the World
As global economic activity picks up and energy and food prices rise, investment experts across our specialist boutiques offer their independent perspectives on inflation risk around the world.
Eurozone Partners Likely to Stay in Marriage for Better or Worse
With sovereign debt problems casting doubts on the future of the eurozone, Standish Global Macro Strategist Tom Higgins says a break-up of the European marriage is unlikely, since both the fiscally weaker and stronger members have interests in keeping it alive. However, structural reforms are needed to ensure greater fiscal discipline.
The Power of Dividends: Global Equity Income Investing
Amid modest return expectations for most major asset classes, James Harries of Newton discusses why investors are rediscovering the potential power of reinvested dividends as an important part of the pursuit of long-term total returns. Focusing on dividend yields, he says, can also be a useful barometer for identifying outperforming companies with efficient capital allocation and cash flow management.
Don't Know What You've Got 'Til It's Gone: The Sources and Uses of Liquidity
Debunking myths about the supply and demand of market liquidity, Bob Jaeger of BNY Mellon's Investment Strategy and Solutions Group argues that the most important source of liquidity is unleveraged contrarian investors who are willing to take the other side of an overcrowded trade. He warns that the growing homogenization of market participants is endangering the kind of investor diversity that is a critical key to preserving reliable sources of liquidity.
Financial Regulation Altering the Cash Management Landscape
BNY Mellon Cash Investment Strategies looks at the potential supply and demand mismatch of shorter-maturity securities as new regulations require money market mutual funds to hold more highly liquid, short-term securities, while Basel III regulations encourage banks to focus on longer-term debt.