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"The fact that there is derisking and deleveraging going on among the bulge
bracket (banks), both from a regulatory standpoint and from a strategy
standpoint, is creating a demand for some other institutions to fill that space
of warehousing and managing the risk intermediation process."
– Jon Corzine, Chief Executive, MF Global
Summer 2011, The Financial Times. What is this man talking about? Risk intermediation? Risk warehousing? Jon Corzine was right, though it did not work out well for him. Regulatory changes have put the Wall Street risk intermediation process into flux. This is creating a need for new participants to bridge risk in financial markets globally. Read more.
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Global equity markets declined during the third quarter amid escalating concerns about sovereign debt in Europe and its impact on the region's banks. Uncertainty and a shaky euro sent investors seeking the relative safety of U.S. stocks and currency. Canadian stocks fell as the cooling global economy dealt a blow to resource shares. Read more. |
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With the economic recovery proceeding at a slower pace than investors had previously expected, fears of a renewed global recession and uncertainties in the Eurozone helped to drive stock and energy prices sharply lower, government bond yields to record lows, and gold prices to new highs during a volatile third quarter. Read
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The past quarter for equity markets was among the worst that we can recall. While the early months of 2011 were certainly challenging, our results at the mid-year point were nonetheless hovering around the zero mark, versus where we are now, at quarter-end, with both funds being down in the low double digits. While stock markets here at home and in the United States were down in the range of some 12-14%, certain other leading world stock markets, including France, Germany and Hong Kong, were down a much greater degree (20%-25%). All in all, a very challenging and diffi cult time for equity investors worldwide. Read
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What just happened? We feel like we've just been trampled by a sloth of bears. (Apparently, groups of bears are called sloths. Although bears tend to be solitary animals, they can sometimes aggregate in large numbers within various markets.) Our performance for the quarter just ended was not good relative to the market, and it puts the year-to-date performance below average as well. That's the bad news. We think our longer-term results remain quite good, at least in a relative sense. Read more. |
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Equity markets declined sharply in the third quarter as a slowdown was seen in real growth in virtually every country of the world. While a deceleration does not necessarily result in an economic contraction, the global economy is in a vulnerable state with the developed world pursuing fiscal policies of austerity and few levers available to policymakers. Read
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Living in one of the coldest cities on the planet, Winnipeggers aren't known to happily anticipate the onset of winter. This is particularly the case after a summer of exceptional weather and a mosquito population that went AWOL. Thanks to the terrible performance of global equity markets throughout the summer and early fall, all of us at Tetrem are more than happy to transition into down-filled parkas. While the days will be shorter and the nights much colder, we believe equities are poised to reclaim a summer of investment discontent. Read more. |
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Now we know how Alice felt. We have watched the clumsy and often confusing political theatre that transpired this past quarter in Europe and the U.S. without understanding how any of it would translate into concrete solutions for the economic and debt problems facing both regions. In the midst of softening global economic growth, we saw a seemingly endless number of emergency government gettogethers and the news conferences, press releases and policy changes that emerged from them. Read more. |
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Global equities suffered a substantial decline during the third quarter as the European financial crisis escalated. The fear of global financial contagion was further exacerbated by poor economic data from the world's largest economies, including the United States and China. In previous communications, we have highlighted many of the long-term macro issues that have overwhelmed stock-specific factors in the global equity markets. Given the enormity of these forces, their consequences, and the associated range of possible outcomes, we believe that it is imperative to factor them into the assessment of individual company and aggregate portfolio risk. Read
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