Some highlights from Monday’s FTfm.
Banks’ dual role in ETFs in jeopardy
Banks running exchange traded funds in Europe face potential challenges to the profitability and even viability of their businesses if regulators adopt proposals for limiting conflicts of interest. The rules would mean they would no longer be able to be both providers and derivative counterparties as they are at present. The change would bring Europe into line with the US
Academics discover predictive powers
Constructing an investment portfolio that can consistently beat the stock market by 40 per cent – with a string of superior risk and return characteristics thrown in for good measure – might sound like the Holy Grail for investors. Orderflow data might hold the key, according to three academics.
Oxfam moves into fund world
The anti-poverty charity, is branching out into asset management by launching its first investment fund in conjunction with Symbiotics, a Swiss microfinance specialist.
‘Attractive’ prospects ahead, says Partners Group
The Swiss alternatives house thinks private debt markets will boom as public debt dries up
Microfinance men launch fund of funds
Jack Lowe and Vincent Oswald, formerly of Blue Orchard, a Geneva-based microfinance investment manager, are launching a fund of microfinance funds under their new Azure Partners label. Microfinance has grown into a $40bn market that is expanding at 30-40 per cent per year, according to Mr Lowe
US and the ambivalent nature of debt
Economic theory, itself pretty unreliable, has little to say about the maximum debt load an economy can sustain, writes James Mackintosh, but even so, few believe US total or household debt can rise that far from here
What the forecasts reveal about market sentiment
Forecasters are usually wrong, which might be why markets appear to be ignoring the dire headlines, writes Jonathan Davis, who adds he still would not rely on even this observation as an indication of future trends
Euro reality check should lead to rally
For now, the reduced tail risk from Greece, and the ECB’s support for the banks, means it’s time for ‘risk on’ says John Dizard