‘Russia risk needs to be seen in perspective’
A leading German economist on Monday urged investors not to exaggerate financial risks around a possible Russian invasion of Ukraine, saying an invasion would merely lead to a “temporary setback” while underlining the need to put the Russia risk into perspective.
“All in all, we would expect the European economy and markets to rebound shortly afterwards from a temporary setback which a Russian attack on the Ukraine would probably cause,” said Holger Schmieding, Chief economist at German private bank Berenberg. “Let’s hope it does not come to that.”
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Schroders is pleased to invite you for the Chinese New Year’s Virtual Conference on Wednesday 23 February 2022
Crypto volatility fund NEOR takes Swiss-Cayman route
Apex Group said on Monday it has been appointed by the NEOR Crypto Volatility Fund Ltd to provide it with administration and transfer agency services. The fund, registered with the Cayman Islands Monetary Authority, will be managed by Switzerland-based Eagle Eye Finance Sàrl, supervised by Swiss financial regulator FINMA.
'Long duration trades fading into the background'
Long duration trades are fading into the background because of tighter monetary policy. Markets have adjusted swiftly and find themselves in the middle of the cycle. The volatility that accompanies this is not necessarily disastrous, said Steven Vandepitte (pictured), asset allocation strategist at ING Private Banking.
Vandepitte believes that the US faces three to four interest rate hikes at most.
New ABBL framework guides banks on CRE risks
Understanding risks related to the climate and environment, also known as CRE risks, and managing them will be a key challenge for banks over coming decades. Luxembourg’s banking association ABBL has sought to provide a framework for this in a new publication which also features some guidance related to strategy and governance, integration of CRE concerns within risk management frameworks and disclosure.
US Treasuries gaining appeal
US 10-year yields rose above 2.0 percent last week. The last time 10-year yields were above 2.0 percent was in July 2019. With skyrocketing inflation and the Fed’s upcoming rate hikes in mind, that probably does not sound so crazy. Yet our model estimate for US 10-year yields points in the opposite direction.
We estimate US 10-year yields using the following factors:
- US unemployment rate
PGIM Investments: Lower Growth, Rates, and Inflation Lie Ahead
PGIM Fixed Income explain why despite the Fed’s hawkish shift, they expect lower growth, range-bound rates, and lower inflation over the long term.
Top 5 Dividend Funds: VanEck ETF in the lead
The superior performance of growth stocks, exposure to companies that are often below average on sustainability and the big impact the corona pandemic had on seemingly certain dividends has made dividend funds unpopular among investors. However, with the rotation towards value stocks under way, there is hope for a revival for income-oriented equity funds.
UBS AM: Optimism about China equities explained
Chinese stocks had a dramatic downturn last year, yet our Head of China Equities Bin Shi is optimistic about the Year of the Tiger.
Luxembourg’s crypto opportunity demands a collective move
There’s a strong level of interest in crypto finance in Luxembourg’s financial centre, according to a survey carried out by the Luxembourg House of Financial Technology and PwC. The Grand Duchy nevertheless has yet to develop the necessary infrastructure to be a leading crypto finance centre.
The survey, entitled “Crypto-assets: Paradigm shift or short-term trend?” was carried out in the last quarter of 2021 and was presented on Wednesday at a Luxembourg event hosted by PwC.