The Yen Carry Trade
The beginning of August 2024 saw the biggest Japanese Stock Market draw-down seen in decades. To blame: the famous Yen Carry Trade. To give readers an insight into this phenomenon, this article will attempt to explain why the Yen Carry Trade has become a dangerous beast for world financial markets. Leverage is a double-edged sword. […]
Boiling a Frog
On July 7th, the French chose electoral uncertainty. With no clear majority, the French President, Mr Macron, can only hope for an administrative government to keep the country ticking over for a year, by which time he could resort, eventually, to a ‘new’ general election for a clearer political mandate. This paradigm will keep the […]
Turtoise on the Move
Fixed Income can be considered as the tortoise of the investment world, with a limited price volatility and a regular return stream. Nothing to write home about. However, this asset class is one of the most important. Pension funds depend on these instruments to cover their pensioner outlays. Life insurance wrappers depend on them for […]
Navigating Economic Signals: Yield Curve Inversion and Global Trade Dynamics
We can ponder as to the economic resilience, together with higher stickier inflation appearing in the American statistics. Most probably, these are carried by past and current extensive US deficits in preparation for an election year. When this ‘resilience’ is pitched against the VOLUME of Japanese and Chinese exports to Uncle Sam’ shores, it tells a […]
Podcast #16: AT1 (Additional Tier 1)
Short and concise analysis on concepts or recent events in the financial markets from the ASG Capital Team. https://youtu.be/RSV7go6WLRs Transcript: This podcast outlines some of the moving parts associated with Additional Tier 1 bonds, better known as AT1, also known as or Cocos. These instruments are an essential part of the capital structure of many […]
Podcast #15: Backstopping the banking system 2.0
Short and concise analysis on concepts or recent events in the financial markets from the ASG Capital Team. https://youtu.be/gdeCC2ggf1U Transcript: After the collapse of the Silicon Valley Bank and the organized takeover of Credit Suisse by UBS under the protection of the Swiss Central Bank, financial authorities, both sides of the Atlantic have finally taken […]
Podcast #14: Fat Cats getting even Fatter
Short and concise analysis on concepts or recent events in the financial markets from the ASG Capital Team. https://youtu.be/8Nxr7-58_fw Transcript: This podcast is called could fat cats be getting even fatter? After the Silicon Valley bank collapse, U.S. financial authorities made sure all deposits were secured. Furthermore, Mark to Maturity quality bank board bond portfolios […]
Podcast #13: Back door QE
Short and concise analysis on concepts or recent events in the financial markets from the ASG Capital Team. https://youtu.be/ub2H2v0M8uo Transcript: This podcast is called Backdoor QE. The authorities recently put in place two important interventions to save the regional banking industry. Â #1 – By ensuring all the deposits in the institutions concerned, the authorities […]
Podcast #12: Until they break something…
Short and concise analysis on concepts or recent events in the financial markets from the ASG Capital Team. https://www.youtube.com/watch?v=wzTEGDRbHms Transcript: In 2022, certain analysts expected the Federal Reserve to tighten financial conditions until they broke something. In its efforts to engineer some kind of credit constraint after years of financial hubris. It was unlikely a […]
Podcast #11: Cutting Markets Down to Size
Short and concise analysis on concepts or recent events in the financial markets from the ASG Capital Team. Transcript: In a prior podcast entitled Beware of a Change in Sentiment, we outlined the possibility of investor exuberance while inflation remained elevated. We explained at the time how this would most probably be contained by a […]
