Fred's Blog: The craziest bond investment?

This post from Fred Wollard's Blog, who I am supposing someone with knowledge of the matters he writes about (it seems so) about a kind of Investement that is being relatively talked about in the Institutional space for the last couple of years or so: CoCo Bonds or Contingent Convertible Bonds.

The assessement is crystal clear: the risks are great. And the shareholder position in the issuer Bank: the best possible! Given the low, in terms of value/net asset position of the shareholders and stakeholders of many Financial Institutions, including Insurance companies or Pension Funds, it isn't a surprise to see the issuing institution (mainly commercial Banks) shareholders' value being maximised.The sell-side of the trade is the one with the greatest incentive to the CoCo play.



Fred's Blog: The craziest bond investment?: Anyone who has ever borrowed money has worried about what would happen if something bad happened to them, and they had trouble r...

Dave Giles' Blog: The Stock Market Crash...

Hi everyone and good to be back on my Investment Case. This post concerns the repost of one of the best blogs on Blogger on economic and Investment issues. I am talking about Dave Giles Econometrics Beat which I occasionally already repost. This time it is inevitable given the quality and importance of the link below that I think will be informative and to the benefit of anyone with an interest in Econometrics or Economic issues and specially keen on knowing all there is to know about the problems related with Stock Markets Crashes and subsequent Financial and Economic Crisis! Definitely a good read.

Econometrics Beat: Dave Giles' Blog: The Stock Market Crash - VECM's & Structural Break...: A few weeks ago, Roger Farmer kindly drew my attention to a recent paper of his - "The Stock Market Crash Really Did Cause the Great R...

Good Deflation......Bad deflation

Exchange controls for dealing with debt to GDP shocks.....?
Hummmm......

Income expectations Hypothesis

Interesting this video. The problem of expectations in the search for yield.....!

Theory of thin air

The Baseball time for the shutdowners......?!

Securities Lending

In the Investment Management universe of businesses the Securities Lending sector is an important part of whole sector. I present in this post a video from Global Custodian Magazine, which is a publication dealing with the Custodian, Private Banking and Investment Management sectors generally. It features an interview with Simon Lee senior vice president for Business Development EMEA eSecLending in which is discussed recent trends in securities lending industry. I would highlight the new regulatory framework for the industry, that may bring greater clarity and transparancy; hard issues like indemnification, that is an increasing cost to these industries but with room for innovation and development, and other issues.

This industry plays an increasingly important role in the Financial Services industry, and was one of the protagonists of the Financial Crisis. The major changes going on on the whole Investment Management industry is in some part a proper response to the events of the Crisis, like the issues related to Clearing, Repurchase Agreements, Central Counterparties, Risk Management and so on. These changes hopefully will restore the good reputation of the industry, the competiteveness and quality of the services delivered and of course being a healthy source of business opportunities.

Venture on Film

I guess I won't need much further comments: