Sentences with phrase «lower risk assets at»

Since the start of this decade the rate of growth of what was perceived to be low risk assets at many banks, was significantly higher than the rate of growth of capital, a trend that played a great part in the collapse of many financial institutions.

Not exact matches

Looking at a simple asset allocation, a theoretical allocation to long - dated U.S. bonds (+20 years) fluctuates from as low as 3 % to as high as 25 % based on changes to the risk model, i.e. correlation of different asset classes.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

«The biggest challenge is delevering, but it presents the opportunity of borrowing at a lower rate of interest,» Gross said, noting that investors must be sure that the assets they're buying this year are creditworthy and present low risk exposure.

And did that do anything in the first place, other than to boost risk assets and «encourage» policymakers in Congress to spend at Fed - influenced low interest rates?

Before the end of April, when the market started its gut - wrenching descent, «the combination of return generation and risk diversification was part of a broader virtuous circle for fixed income, which also included significant inflows to the asset class and direct support from central banks,» El - Erian writes at the start of his viewpoint, noting that in addition to delivering solid returns with lower volatility relative to stocks, the inclusion of fixed income in diversified asset allocations also helped to reduce overall portfolio risk.

We have a saying that «when the CBOE Volatility Index1 (VIX Index) is low it's time to go» — the VIX is often referred to as the fear index or fear gauge, and when it's at low levels, we think it could be a prudent time to move a little more out of risk assets.

This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).

In particular, the organization raised concerns about leveraged trading of cryptocurrencies, though it acknowledged that the low correlation between cryptocurrencies and other assets «suggests that the risk of spillovers from idiosyncratic price moves in crypto assets to the wider market may be limited at this point.»

Our return expectations across most asset classes are at post-crisis lows, but we believe investors are getting compensated for taking on risk in equities, selected credit / emerging markets (EM) and alternatives.

This, in turn, propels valuations of risk assets higher, at the expense of lower projected returns in the future.

It is not the banks that are so much at risk, though some will have to collapse conduits and bring asset back onto their balance sheets, lowering capital ratios.

Investments within the portfolio are actively managed in an attempt to ensure we are in the right assets at the right time to maximise returns while maintaining a low risk profile.

From that perspective, I again say that if you as an investor can't sleep at night with funds off the beaten path or if you don't want to do the work to monitor funds off the beaten path, then focus your attention on asset - allocation, risk and time horizon, and construct a portfolio of low - cost index funds.

Successful income investing involves putting together a collection of assets that generates the highest possible income at the lowest possible risk.

The essence of our investment philosophy is that capital markets work in the long run; a portfolio's risk is defined by its allocation among asset classes; and that security selection is a matter of constructing portfolios with specific expected return / risk characteristics at the lowest cost.

A traditional static indexing approach leaves an investor overweight the riskiest assets at the riskiest times and underweight those low risk higher yielding assets when their returns are likely to be highest.

Winning means keeping your clients happy by realizing low risk and great returns, slowly growing assets under management, while at the same time, not wasting / losing time and money trying to manage money.

Based on the stated low risk of not achieving an 11 % return in the long run, should someone leverage up at low rates, esp if against an asset of value they own (e.g. Remorgatage their house — central London flats bought for # 200k now worth a million)?

With proper asset allocation, it's possible to lower the amount of risk in your portfolio while still maintaining a decent return, which should help you get better sleep at night!

Moderate growth / income investors who have been emulating my tactical asset allocation at Pacific Park Financial, Inc., understand why we will continue to maintain our lower risk profile of 50 % equity (mostly large - cap domestic), 25 % bond (mostly investment grade) and 25 % cash / cash equivalents.

The irony here is that it did survive, with much of its equity intact & a relatively low - risk balance sheet, and yet... it has still ended up trading at a deplorable discount to Net Asset Value (NAV)!

But to obtain this lower interest rate, the loan must be secured by your assets, usually home equity, putting your home at risk if you fail to meet obligations.

Without getting into the theory, let's look at a simple (but unrealistic) example of how combining risky assets can lower the risk of a portfolio.

Most advisors recommend using a combination of risky and risk - free assets, or at least using low risk assets (like high quality short - term bond funds) to reduce the risk of your portfolio to a level that's appropriate for you.

USD JPY Tumbles as Return of Risk Aversion Rocks the Markets The USD JPY reversed its four day rally as traders sought safety in lower yielding assets following an announcement by President Obama to curb trading at financial institutions.

Fed Statement Does Nothing to Stop Demand for Higher Risk Assets The Fed FOMC committee decided to leave interest rates at historically low levels and issued a statement that said nothing to deter demand for higher risk assRisk Assets The Fed FOMC committee decided to leave interest rates at historically low levels and issued a statement that said nothing to deter demand for higher risk aAssets The Fed FOMC committee decided to leave interest rates at historically low levels and issued a statement that said nothing to deter demand for higher risk assrisk assetsassets.

Low P / B stocks tend to be securities where the market thinks the assets are overvalued at historic cost, or there is some risk due to the size of the liabilities.

My conclusion was that TFG trades at a discount because of it's egregious fee structure a — i.e. if you have the same underlying risk on two bonds and someone «steals» 20 % of your coupon then that bond should naturally trade at a discount... I chose to invest in CIFU as it consistently pays out 50 % of all free cash as dividend and reinvests the other 50 % in similar asset and its running at much lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspecasset and its running at much lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspecAsset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspective.

1) Start saving early by setting realistic goals 2) Ensure the asset allocation in your portfolio remains in sync with your level of risk aversion and overall investment objectives 3) Keep costs and taxes to a minimum by avoiding most high turnover actively managed mutual funds and opting for tax - deferred savings whenever possible (not only do their investments grow tax - sheltered but for most people their MTR at retirement would be lower than it is during their working years) 4) Balance your portfolio at least annually (some individuals may choose to do so semi-annually) 5) Hammer away at your debt first — for example, when it comes to contributing to an RRSP or TFSA vs. paying down your mortgage, ideally you should do both.

At the end of October, the fund was 91.3 % long and 35.3 % short, using leverage to invest more than 100 % of assets, but lowering risk by investing both long and short.

And that is to basically ignore the noise — or at least don't act on it — and instead create a broadly diversified mix of low - cost index funds or ETFs that reflects your investing goals and tolerance for risk (which you can gauge by completing this risk tolerance - asset allocation questionnaire).

This is particularly absurd when you consider the low risk nature of the current balance sheet — most assets are in cash /» deposits» / bonds, and debt can be repaid at a moment's notice.

Some assets with very little risk will earn a very little bit more than short term treasuries, but overall there's nowhere to hide — the time value of money is extremely low at short horizons.

If the optimizer thinks adding a particular asset provides a diversification benefit, which could potentially lead to lower overall portfolio risk, without lowering the return significantly, the program will choose to use this asset at the exclusion of others.

• Asset allocation is the only non-derivative technique you can use to reduce risk (lower overall portfolio volatility), increase income, and get better returns, all at the same time.

Let's assume that the goal of diversification is to reduce our risk by taking on new, uncorrelated risks in order to seek equitylike returns at bondlike risk — our industry's holy grail — rather than merely to invest some of our money in low - volatility markets.8 Most would suggest that other risky assets should serve this purpose — if they offer an uncorrelated risk premium (e.g., if that risk premium is related to risk, not to beta).

Another potential change would be to better balance damage and suppression costs to lower the overall costs of fire — in effect, devoting more resources away from suppression and toward the protection of assets at risk.

These low prices have placed some existing generation assets at financial risk and altered incentives for new investment.

For existing assets, our research can highlight which ones are more at risk of becoming stranded under a lower demand scenario — for example one that restricts anthropogenic warming to 2 °C.

Further analysis has identified the fossil fuel reserves and resources at risk of becoming economically «stranded assets» due to a low - carbon energy transition.

It contains a number of tropes that may be familiar to the well - versed in oil and gas climate disclosures — for example narrowing the scope of stranded assets, and characterising the energy sector impacts of a low carbon transition as gradual and well - signposted, thereby depriving investors of an assessment of the volumes and capex at risk should the company misread the pace of the transition.

The new trustees now faced a classic dilemma; at the point where funds available were lowest, they had to decide whether to proceed with a case against the original trustees with all the inherent risks that entailed in terms of adverse costs if they lost or, not take action but risk a future claim by the trust's beneficiaries for failing to carry out their duties in properly preserving the trust's assets.

The officials at IRDAI have deployed risk - based capital method for evaluating solvency margins for establishing autonomic health insurance firms, and discovered that only 100 % of liabilities, excluding assets are needed to create solvency - and this is lower than the150 % margin as per the industry standards.

The bottom line: Congress is ignoring the needs of America's working - class families and small businesses, and by undermining the nation's longstanding support for homeownership and threatening to lower the value of the largest asset held by most American families, this tax reform plan will put millions of homeowners at risk.»

Alan Brymer is the Managing Director of Key Elements Capital, a boutique value - add real estate investment firm focused on acquiring, improving, and operating multifamily assets at a low basis while providing otherwise unobtainable real estate investment opportunities with reduced risk to clients.