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Beware of FRTB cliff effects. Sharp curvatures ahead. 

Integrated Risk Management , Fixed Income , Models/Client Cases , Risk Management

The Basel committee’s revised market-risk capital requirements contain a small surprise with potentially big implications. Cliff effects remain in the framework.

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Resilient carbon-transition portfolios: a road map 

ESG Research

Is your portfolio ready for the transition to a low-carbon economy? Which companies, industries and sectors are positioned to benefit? Which ones entail greater risks? The answers are a lot more complicated than alternative energy is in and coal is out. 

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Uber vs. Lyft: Who’s at the wheel? 

ESG Research

Two companies, one highly disruptive business model, multiple big challenges looming. Few IPOs in recent memory have attracted more attention – or disappointed more decisively, initially – than the IPOs of ride-sharing groups Uber and Lyft. At the end of June 7, 2019, two months following its IPO, Lyft’s share price traded at 17.7% below its IPO price, while Uber’s ended that same day 1.9% lower. Could ESG considerations have played into investors’ thinking?

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European securitization at the regulatory crossroads 

Fixed Income , Risk Management

Have new European Union reforms clouded the future of the securitization market in Europe?

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Lessons from Woodford: Shutting the barn door after the horses have bolted 

Factor Investing , Factors

The suspension of the U.K.’s Woodford Equity Income Fund highlights the value of regularly reviewing a portfolio’s factor exposures and liquidity characteristics for signs of style drift or deteriorating ability to redeem shares.

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Using alternative data to spot ESG risks 

The amount of ESG-related information disclosed by corporations is on the rise, but investors still often lack a full understanding of financially relevant risks. How can they gain a better sense of where their investments are most vulnerable to ESG-related disasters?

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The rise of fundamental factors in China A shares 

Emerging Markets , Factor Investing , Global Investing

Commonly held perceptions about China A shares have influenced investors to think factor strategies may not work in the Chinese equity markets. Our research suggests this may be changing.

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Fed policy, the credit cycle and real estate 

Risk Management , Real Estate Investing , Fixed Income

Amid the uncertainty over Federal Reserve policy, investors in commercial real estate (CRE) are confronting asset-allocation challenges and growing concerns about CRE valuation and debt levels, after an extended period of easy credit.

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What could stress emerging markets? 

Global Investing , Risk Management , Economic Exposure , Emerging Markets

Emerging-market equities and USD-denominated EM sovereign bonds started 2019 with a bang, but recent market turbulence caused by the U.S.-China trade standoff raises a pressing question: What could trigger the next EM downturn?

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Beyond headlines: How markets responded to US-China trade talks 

Economic Exposure , Emerging Markets , Global Investing

Our analysis suggests that changes in equity-market valuations, analysts’ consensus earnings estimates and data on companies’ revenue exposure are metrics that provided insight into recent market and sector performances.