White papers - all assets – Page 245
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White papers
How to protect an equity portfolio with an overlay strategy in a market downturn
Dynamic risk management strategies (risk overlays) can be useful for investors. They are a means of reconciling their two main objectives: capturing the risk premia of risky assets to meet their long-term strategic goals, while still meeting short-term objectives such as limits on drawdowns or requirements for regulatory capital.[1]
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White papers
Market weekly – Do you have the equity protection you need? (podcast)
Equity bull markets run out of steam eventually, plunging investors into periods of volatility. The end of the rally that ran from 2009 to 2019 is no exception. Institutional investors are now negotiating choppy waters with instable markets, a health crisis and a global recession. They face the challenge of investing in equities to achieve their return objectives while respecting risk constraints and managing downside risk from the bouts of volatility that regularly affect markets.
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White papers
Cobalt mining in the DRC – reflections from the ground
Dangerous working conditions and human rights violations are among the risks faced by cobalt miners in the Democratic Republic of the Congo (DRC). Late last year, engager Marcus Wilert joined an OECD delegation to the DRC to see the conditions first-hand. Here he reflects on some of the challenges.
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White papers
Assessing Climate Risk in Portfolios: Expert Roundtable
With climate change, portfolio managers face a new type of variable with diverse effects on economies, industries and companies. AB investors and experts from Columbia University and Willis Towers Watson weigh in on how to address climate change in the investment process.
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White papers
Science and Investing: Addressing the Climate Imperative
Tackling climate change will require enormous amounts of capital—invested smartly. Climate scientists and investors can learn from each other, an idea driving collaboration among Columbia University climate experts and AB investment professionals.
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White papers
Why Investors Need to Calibrate Climate Risk Now
The global climate is enormously complex, challenging investors to determine ground-level impacts on individual issuers. With climate change likely to accelerate, it’s time to ramp up analysis now—and not let the perfect be the enemy of the good.
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White papers
A Moment of Solidarity for Europe
There is still much work to do, but the Franco-German-led EU Recovery Fund is potentially a very big deal for Europe.
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White papers
Past Performance is Not a Guarantee of Future Results
When the world is changing so rapidly and profoundly, how can we trust the underlying data used in our investment models?
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White papers
Why June May Be The Most Important Month Of The Year
We’ll have a substantially better picture of how quickly global demand may recover.
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White papers
Trajectory Monitoring in Portfolio Management and Issuer Intentionality Scoring
2°C alignment has become a major issue for climate-aware portfolio management. There are sophisticated initiatives aiming to predict corporate emission intensities from 2030 up to 2100.
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White papers
European high yield credit update
Credit markets stabilised in April; however, a wide dispersion of spreads means active stock-pickers can still find potential opportunities.
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White papers
Flattening the credit curve: A closer look at short-dated assets
There are few areas of life that COVID-19 hasn’t impacted and credit markets are no exception. Mhammed Belfaida explains how the flattening of credit curves has revealed a surprising anomaly.
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White papers
May Macro Dashboard
While supply is coming back, the demand recovery remains unclear. The damage in Europe is showing up larger than expected a month ago, but high frequency data showed some signs of improvement in May. China’s economy is on the road to recovery, though the path differs by sector.
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White papers
Why ESG Is Outperforming The S&P 500
Over the past year, the S&P 500 ESG Index exhibited returns nearly 3% above the benchmark S&P 500. This is impressive given the objective of the ESG Index is not to outperform the benchmark. Instead, it can offer a sustainable alternative to the broad-based S&P 500, with similar risk and return, while at the same time achieving a boost in S&P Dow Jones Indexes ESG Score performance.
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White papers
EM Short-dated Debt: A Diamond in the Rough?
COVID-19 and lower oil prices have led to indiscriminate selling across EM corporate debt, creating a potentially compelling opportunity in the shorter-dated, higher-yielding segment of the market.
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White papers
Coronavirus – Weekly update – 27 May 2020
Exits from lockdown proceed with no major upsets / Stock markets remain cautiously positive / For now the ‘wall of money’ from central banks has quashed volatility.
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White papers
In the wake of first-quarter reporting season, the consensus is probably still too optimistic
At -12% for the S&P 500 in the US and -35% for the Stoxx 600 in Europe, first-quarter results were hit hard by the pandemic, even though it had hardly begun by the end of the quarter. It is therefore a safe bet that results will be even worse in the second quarter but also that they will bottom out for the year. Even so, the consensus still looks far off the mark for both second-quarter results and for 2020-2021. Consequently, the positive impact from reopening the economy already appears to be priced in by far.
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White papers
Markets scenarios & risks – June 2020
We maintain the overall pandemic narrative confirming the probabilities, assigned to the base and alternative scenarios.
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White papers
Macroeconomic picture – June 2020
The coronavirus crisis has pushed the U.S. economy into a sharp downturn, with severe disruptions of businesses and mass layoffs. Unemployment has surged into double-digit territory (14.7%); confidence on both the consumer and business sides has plummeted; and consumer inflation has started to reflect the consequences of the lockdowns, with headline CPI falling to 0.3% YoY (1.5% prior). The timing and profile of the recovery are still highly uncertain, but we expect GDP to contract between 4.5% and 6.5% YoY, with inflation remaining significantly subdued, with significant risks of moving into negative territory during the year