The Bond that Works When Rates Rise
Yogi Berra was right about the 30+ year rally in bonds: “It ain’t over ‘til it’s over”. The chart below shows the persistence of this rally starting in the 1980s. Over this period, bonds have been considered a productive asset not only because of this consistent performance, but also because of their diversification benefits. However, as rates have dropped from over 10% in the 1980s to below 1% in 2020, it begs the question: is it finally over?
Chronicles of an Allocator: Data Science
Not everyone has to be a master coder or a world-class quant, but it’s becoming increasingly important for investors of all stripes to understand how data science, artificial intelligence (AI), and machine learning (ML) will impact investment processes. Across asset classes, more managers are utilizing these tools to generate differentiated sources of return, but allocators also see the incremental benefits of the operational efficiencies and scale that AI and ML have introduced.
What About Beta? | Spac-A-Mole
At the start of this year, the SPAC craze was alive and well. The prior year’s results were tallied and – according to a WSJ article - 2020 was in the books for having raised $82B; a six-fold increase from the year before, and a total that eclipsed all the capital that had been raised for US SPACs since the beginning of time. The future was bright, and the underwriting fees were in overdrive, to the tune of billions of dollars along with a multitude of ways to earn them: underwriting fees, deal fees upon consummation with a target, and fees for good old-fashioned advice. Then a skunk came to the party and whac-ed this mole.
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