Latest White Papers – Page 315
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White papersThe ECB And The EU Banking Sector: Some Relief, With Winners And Losers
The new two-tier deposit-reserving scheme: With this measure the European banking sector could save up to c. €4 billion in annual interest costs (based on avoiding the -50bps deposit rate). However, while a large number in absolute terms, this only accounts for c. 2% of earnings on average for the main banks in the sector and therefore has little impact on overall Returns on Equity and profitability metrics.
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White papersFlexible credit: all-weather allocation
Flexibility means having the freedom to invest strategically across fixed-income markets. In the second instalment of our five-part series, we look at how flexible strategies generate returns by allocating capital and risk across the credit spectrum.
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White papers
Are High Yield Investors Being Compensated for Risks?
In the context of today’s fundamental backdrop and default outlook, spread levels suggest investors are being fairly compensated, relative to other points in the cycle, for the amount of risk they are taking.
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White papersThe Fed Cuts Rate, But The Market Expects More
The Fed cut rates, but the market expects more: As expected the Federal Reserve lowered its target range for the Federal Funds rate by 25 basis, and now the market anticipates as many as three more cuts by the end of 2020. We think that is too much. In our view, the Fed is likely to pause to monitor the effects of the rate cuts on the economy, before acting again.
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White papersGlobal Investment Views - October 2019
Stay Agile Amid High Uncertainty
Over the past few weeks markets have fluctuated between positive news around geopolitics (US-China trade talks, Italy and receding risks of no-deal Brexit) and not so good news around economic data (German recession, US manufacturing and Chinese slowdown). This led to a rebound in equities and a rise in core bond yields. -
White papersCapitalising on Dublin’s docklands boom
Home to tech giants, business and finance multinationals and a host of retail and cultural attractions, Dublin’s Docklands is a thriving international hub of commerce and leisure.
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White papersRefining Risk Management for an Uncertain World
Investors are facing a strategic conundrum in a world of vast political, macroeconomic and market risks. In this environment, generating a better risk/return balance requires a deeper understanding of the sources of risk across asset classes and new data analysis techniques.
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White papersBeyond ESG risk integration: Impact investing
Environmental, Social and Governance (ESG) investment is taking root within the infrastructure investment community. Infrastructure assets have the potential to bring strong social, environmental and economic benefits to society but they are also particularly exposed to ESG risks. Most investment firms active in the space have by now implemented ESG considerations in their investment process.
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White papersCounting the business cost of deforestation
The risk of brand damage and consumer boycotts from poor environmental corporate practice has never been higher. Some companies are changing their ways, others could do more.
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White papersPortfolio Risk Management: A Multidimensional Perspective
Asset allocation, effective portfolio design and dynamic management have always been powerful tools for battling volatile markets, but risk has come into even sharper focus lately. Economic growth is slowing, yields are low and stocks have taken several tumbles. Investors are looking for new ways to tackle risk.
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White papersYour Questions Answered by Hermes Multi Strategy Credit
Your Questions Answered: a quarterly Q&A series featuring the top 10 questions that clients and prospective clients ask our investment teams.
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White papersCluster Analysis: Managing Risks You Didn’t Know You Had
From anthropology to politics, analysts in many fields have used cluster analysis to help decipher complex relationships for nearly 90 years. But investment firms are only beginning to discover the powerful applications for detecting unknown risks lurking in market behavior patterns.
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White papersQ4 Economic Outlook: Learning To Live With Deflation...
In his latest Economic outlook, Neil Williams, Senior Economic Adviser to Hermes Investment Management, argues that Japan-style deflation is becoming an increasing possibility elsewhere. While it may not involve a general downturn in living standards – Japan after all remains a prosperous G3, $5trn economy (almost twice the UK’s) – the main challenge would be the shift in mind-set needed to live with it.
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White papersTrade War Escalation And Impact On World Trade And Economic Growth
Trade tensions re-escalated during the summer. Starting on 1 September, the US Administration introduced new tariffs and China retaliated simultaneously. More tariffs are likely from the US side, including an increase in tariffs already in place from 25% to 30% and new tariffs on the last tranche of imported goods from China. Concerning extra-tariffs measures, in August the temporary licences granted to US companies to operate with Huawei were extended upon their expiration but, so far, with no additional structural guidance.
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White papersRisk Factors, Macroeconomic Context And Forecasts - September 2019
Financial markets have been rattled in the past weeks over escalating trade war between the US and China as both imposed tariffs and counter-tariffs on imports. Idiosyncratic risks stories in countries such as Argentina resurfaced, the UK’s parliament was suspended over Brexit chaos and Italy witnessed a political crisis of its own, although a government seems in sight now.
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White papersView on Italy: beyond the short term
The end of the political crisis and next steps for the new government: The new pro-European government looks to be willing to move in a different direction vs the previous one, with an agenda focused on green and socially inclusive policies. It is difficult to project how long this new coalition will last, but it will certainly have to address the next budget law. We expect to see some expansionary measures (lower labour costs plus investment spending), but without putting public finances at risk. However, the available room for manoeuvre is narrow.
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White papersSpotlight on the circular economy - Targeting sustainable development by ‘closing the loop’
Since the start of the industrial era, linear economic models have dominated the global economy, with resources typically extracted, used and then disposed of as waste.
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White papersHermes SDG Engagement Equity Fund - H1 2019 report
The Hermes SDG Engagement Equity Fund targets investment outperformance and social and environmental impacts that help deliver the Sustainable Development Goals (SDGs). What progress did we achieve through our engagements in the first half of 2019?
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White papersBritain’s Most Likely Destination
It Won’t Become Some Sort of Hermit Kingdom in the North Sea.
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White papersFlexible credit: strategies for all seasons
A flexible, all-weather approach to credit investing has risen in popularity during the past decade. In the first instalment of a five-part series, we look at how flexibility has helped credit investors capture income in a low-yield world and manage duration risk. In an uncertain and often volatile environment, we consider what a flexible approach can offer investors at this stage of the macroeconomic cycle, and throughout the next.
