Credit analysts are a corporate bond manager’s best friends. No portfolio manager can be entirely aware of the extent of credit risks in a broad portfolio. They provide a necessary check on the ability of the...
Read MoreIn a panic, only two attributes of a financial instrument get priced — liquidity and quality/survivability. In a panic, all risky assets become highly positively correlated with each other. Given that correlations tend to...
Read MoreRaghuram Rajan made a name for himself at the Jackson Hole conference in 2005, which was a kind of send-off for the victorious Alan Greenspan. Alas, but the paper he brought was not appreciated at the time, as it pointed...
Read MoreAfter 9/11, and and before the merger was complete on 9/30/2001, our investment team got together and came to an unusual conclusion — 9/11 would have little independent impact on the credit markets, so be willing to take...
Read MoreThere has been a lot of talk lately about systemic risk, a concept that is not well-understood. Let me simplify it for you. Anytime debt grows in an area of the economy at a rapid pace, there is an unstable situation...
Read MoreWhen I started this series, I did not think that it would expand as much as it has. Part of that is getting great questions, such as: Hi David, Great series! You mention that reputation/size matters. Are there any...
Read MoreI’ve read a number of articles on hedging tail risk of late. Most of them were pretty good; I just want to add in my thoughts. For those who haven’t read the articles, tail risk is when even safe investments...
Read MoreA reader MorallyBankrupt, asked, What I am wondering here is the following, how fast was the decision process? For those of us that have never worked in the new-issue market for corps, the timeline is not obvious. How did it all...
Read MoreThis book is different, and it will get a different book review from me. I have not read it, but I have scanned it. This book aims to give extended yet compact explanations of the definitions of words that end in...
Read MoreDear Readers, New asset management shops start small. One of the luxuries I have had for the past 18 years is access to a Bloomberg Terminal. I will not be able to afford one ($20-25K/year), at least not initially,...
Read More
