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A new twist in the saga of Japan’s unconventional monetary policy

A new twist in the saga of Japan’s unconventional monetary policy

Following its policy meeting on 21 September 2016 the Bank of Japan (BoJ) yesterday announced the following measures: The BoJ maintains the rate for deposits held by financial institutions at the BoJ unchanged at – 0.10%. A scrapping of the ...

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Momentum, the unloved factor

Momentum, the unloved factor

Momentum is unloved: being a good follower is rarely seen as a strength, and few asset managers would brag about using momentum as an investment factor, even though they know that ‘the trend is your friend’. Part of this unpopularity ...

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Bank of Japan policy meeting – a preview from Tokyo

Bank of Japan policy meeting – a preview from Tokyo

Global bond markets have sold off since the 9 September as investors got the jitters about the intentions of central banks. Nowhere is this more apparent than in longer-dated Japanese government bonds (JGB). Yields on the 30-year JGB have risen ...

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Quality, the positive factor

Quality, the positive factor

Quality is positive: it is about good companies that are efficient at managing their businesses profitably, creating shareholder value and being rewarded with above average returns. Yet, quality is not always easy to recognise or measure. Here are a few ...

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Central banks get back to work

Central banks get back to work

The European Central Bank (ECB) did not give any guidance on 08/09/16 as to what will happen when its quantitative easing program ends in March 2017, sparking the beginning of a sustained sell-off in yields. The Federal Reserve may not ...

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Draghi: “Monetary transmission has never worked better”

Draghi: “Monetary transmission has never worked better”

When ECB president Draghi said (during the press conference after the ECB’s meeting on 08/09/16) that the monetary transmission mechanism had never worked better than it does currently, he was probably deliberately exaggerating. Nonetheless, he does seem genuinely pleased with ...

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Value, the obvious factor

Value, the obvious factor

Value is obvious: ‘buy cheap and sell expensive’ is probably the first piece of received market wisdom that any investor learns. All famous investors from Benjamin Graham to Warren Buffet have, first and foremost, been fervent advocates of value investing. ...

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Global warming: how to live in dry areas

Global warming: how to live in dry areas

It has now become clear except to diehard climate sceptics that some parts of the globe will have to adjust to a hostile environment where even access to water is a daily challenge. Water use cannot be based solely on ...

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China: programming the country for defaults

China: programming the country for defaults

Two years on from the first credit default in China, the country has seen 11 issuers defaulting this year. For the third largest bond market in the world, letting defaults happen is a challenge. The government’s implicit guarantee seems to ...

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