BLOG

Factors separated fact from fiction 

Factor Indexes , Factor Investing , Factors

Technological advances have expanded the application of factors. What was the realm of quantitative investors has become more accessible, bringing greater transparency and potential insight into portfolio characteristics and performance drivers.

BLOG

Chinese convertibles: Equities in fancy dress? 

Emerging Markets , Fixed Income , Global Investing , Models/Client Cases , Risk Management

Chinese corporate bonds that convert to A shares display equity-like characteristics. But investors who view these securities as equities in disguise are overlooking the complexities of the asset class.

BLOG

Retire in Monte Carlo? Simulating retirement outcomes 

ESG Research , Factor Investing , Models/Client Cases , Risk Management

Despite global equity performance, U.S. DC plan participants may be ill prepared to meet retirement-spending needs. We assessed four equity-allocation scenarios, all following a common glidepath and bond allocation, to see which performed best.

BLOG

Stress testing Brexit: Deal or no deal? 

Global Investing , Models/Client Cases , Risk Management

Brexit has roiled markets since U.K. voters chose “leave” in the June 2016 referendum. We used our stress-testing model to examine how markets could react to deal and no-deal scenarios.

BLOG

Is Europe more than the sum of its parts? 

Equity indexes

Investors have a choice between investing in European stocks regionally or through local-country index-based portfolios. What are the pros and cons?

BLOG

What’s the downside in real estate? 

Real Estate Investing , Global Investing

Real estate has always been marked by periods of expansion and sometimes painful corrections. But all cycles are not alike.

BLOG

Factors in Focus: Momentum hits a valuation speed bump 

Factor Investing , Factors , Models/Client Cases , Risk Management

The momentum-value spread saw one of the largest corrections in history over the summer. What does our model show going forward?

BLOG

Senior bonds in name only 

Fixed Income , Models/Client Cases , Risk Management

Write-down protection doesn’t extend to a new bond category issued by too-big-to-fail European banks: senior non-preferred. Investors in senior debt may wish to consider these bonds’ recovery risk.

BLOG

Is the US tech sector ignoring minority talent? 

ESG Research

Looking in one’s backyard for human capital.

BLOG

MBS prepayment modeling: AI 1, Humans 0? 

Fixed Income , Models/Client Cases , Risk Management

Artificial intelligence has broken through in fields previously dominated by humans. Could AI surpass humans in modeling the complex risks of agency mortgage-backed securities?