Insights

 

FX Outlook
February 02, 2010 Posted by

Given last week's break of 1.4000 by the euro as the focus on the Greek debt situation continues, I thought it would be good to take a deeper dive into where the different countries that make up the euro stand.First,

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CIO Vantage Point
February 02, 2010 Posted by

Last week the SEC adopted new rules designed to strengthen the money market fund world (or "2a-7 world" if you want to get technical), which are targeted at increasing liquidity, credit quality and transparency. Without going into too much detail, the new rules will effectively limit investment options for these funds, including the development of a concentration of funds to be invested in the very short term.

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Observation Deck
February 01, 2010 Posted by

The Federal Reserve decided on January 27 to keep interestrates at historically low levels despite pronouncing a continued pickup in economic activity and a deceleration of job losses. Faced with a double digit unemployment rate, tight credit conditions, and real estate price depreciation, the decision was not surprising. However, the federal funds rate has been pegged between 0 percent and 0.25 percent since December 2008, and the Fed’s ongoing comment that economic conditions “are likely to warrant exceptionally low levels of the federal funds rate for an extended period” does cause us to re-ask the following questions: “What does the Fed mean by ‘extended period,’ and how should client portfolios be positioned?” 

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Advisories
January 28, 2010 Posted by

 The aim of cash management is to make use of idle funds by choosing the appropriate investments and providing adequate liquidity, while generating income and producing higher yields. These goals align exactly with the advantages of an active portfolio strategy in today’s environment.

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CIO Vantage Point
January 26, 2010 Posted by

A very interesting debate is developing regarding the business world (perhaps I should say the "government regulation" world) that has more to do with culture and sociology than getting business done. The underlying question is: How much risk is too much? 
 

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FX Outlook
January 26, 2010 Posted by

As they tend to do with remarkable frequency, politicians and regulators have become involved in various markets around the world over the past week, and the results have not been pretty for the most part. 

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CIO Vantage Point
January 19, 2010 Posted by

Many readers have commented on my use of song quotes. In response, I've received many good and many not-so-good suggestions. The above quote, however, fits this column on my 2010 outlook exactly as all market participants look for their "own way" to protect principal while garnering above-market returns.

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FX Outlook
January 19, 2010 Posted by

On January 7 of this year, the day after his appointment as Japan's finance minister, Naoto Kan stated that there was a need for the yen to weaken in order to help Japanese exporters. The markets did not treat this statement lightly, for it effectively reverses the long-held position of his predecessor, Hirohisa Fujii, of allowing the value of the yen to be determined solely by market forces. Fujii-san had resigned earlier in the week due to ill health. Kan explained that he "must work with the Bank of Japan to bring the yen to appropriate levels given its impact on the economy" and that "many Japanese firms favor yen at around ¥95." The currency markets were caught completely off guard by his comments and responded by selling the yen in a panic, driving it lower by more than half a yen vs. the dollar -ultimately to ¥93.77, its lowest level versus the dollar since last August.

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