Institutional Asset Management News and Insights
VANQUISHING THE INVESTMENT RISK HYDRA. CAN INSURERS SIMULTANEOUSLY OPTIMISE AGAINST ECONOMIC, REGULATORY AND ACCOUNTING RISK?
The investment risk Hydra Ancient Greek mythology speaks of the great hero Heracles (known as Hercules to the Romans); and of his twelve labours performed as penance. The second of his heroic labours was vanquishing the Lernaean Hydra, a serpentine monster with...
The Debrief | Q1 2023
We invite you to sit down with our Chief Investment Officer, Pau Morilla Giner, and Head of the Private Investment Office, Iain Tait, as they debrief on the last quarter and look ahead to potential market trends for Q1 2023. They examine the geo-political shifts,...
AUTUMN STATEMENT – FIXED INCOME REACTION
Given the intense anticipation for the Autumn Statement please find below our market update and a summary of the macro impact. Post Autumn Statement Market Update The fiscal consolidation package, alongside Hunt’s reiteration of his support for the Bank of England...
Will inflation ease and how long will it take to revert to the 2% target?
Inflation readings have remained sticky and where there is improvement, it is extremely gradual. The battle between demand pull and cost push pressures seems to be heading in the right direction, but frustratingly, it is happening at a snail’s pace. Despite this,...
UNCERTAINTY, INFLATION AND THE US FEDERAL RESERVE
The markets have been on a rollercoaster ride over the past couple of weeks. Initially there was a significant drop in equities and a rise in bond yields following the US Federal Reserve (Fed) statements on the 2nd of November. This was quickly followed by a large...
Can the central banks pull off a soft landing?
There is an increasingly big gap appearing between official economic forecasts (the consensus is for a soft landing) and market expectations (inverted yield curves, higher market volatility, and falling risk assets) that are beginning to discount a greater probability...
What are central banks trying to achieve?
The focus seems to be on demand destruction to take inflation back to target. Fed set on a quick path to a terminal rate above.4%. ECB and BoE following suit, even with weaker economies. Some central banks (BoC and RBA) taking their foot off the pedal. Central Bank...
ANDPAPERS Q4 2022 | WINTER IS COMING
Q3 began with a glimmer of hope for markets. Expectations that the Fed could start to pivot (given concerns about slowing growth) translated into a significant rebound from mid-June lows. By mid-August, the rally had come to a screeching halt: a high US inflation...
The price of panic: why investors should be wary of the inflation crystal ball
Start a conversation these days and the likelihood is that at some point it will turn to inflation. Shall we go for a drink? How’s that house move shaping up? Where shall we go on holiday next year? Avoiding reference to rising prices or the efforts to control them is...
NOTE FROM THE CIO 30.08.2022
The first six months of 2022 were particularly challenging for investors: central banks became increasingly determined to rein in inflation at a time when several factors (including Ukraine conflict) kept pushing up inflationary pressures. As a result, US Stocks and...
TO HEDGE OR NOT TO HEDGE? DOES IT MAKE SENSE FOR INSURERS TO TAKE ON FX RISK?
FX HEDGING ASSET EXPOSURE In the last 6 - 12 months we have seen a torrent of activity as Central Banks have worked, arguably unsuccessfully, to use interest rates to control inflation. Given recent geopolitical events the drivers of inflation seem to have shifted...
Global Macro Market Outlook: What is the medium-term view?
Prior to the COVID outbreak, the main topics of conversation and concern were low growth and low inflation, with low productivity and ageing demographics hampering the developed economies. Central banks have been forced into successive long periods of monetary support...