Peter Cecchini

The US structured products market continues to grow, supported by investor demand and strong yet volatile markets. We assess their recent performance. A version of this article authored by Tim Mortimer was originally published by SRP. https://lnkd.in/ebMBh-xj #StructuredProducts #Investment #Research #Analysis #StressTest #Valuations #Consultancy #B2B

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In his latest commentary, Director of Global Markets Research Mike Mullaney discusses the Fed’s shifting priorities, the implications for interest #rates, and the prospects of a soft landing for the #economy. Read the full August recap here: https://lnkd.in/eaRD9VQU

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Today New York City Comptroller Brad Lander outlined a plan to prohibit new investment by NYC pension funds in private market investments in midstream and downstream fossil fuel infrastructure. If approved by fund trustees in 2025, the plan would expand on prior exclusions on investments in oil and gas exploration and production by barring future investments in assets like pipelines and LNG terminals and prohibiting limited partnerships in fossil fuel exposed private equity funds. “Climate risk is financial risk, and we have a fiduciary duty to our beneficiaries to take that risk seriously as we make long-term investment decisions,” said NYC Comptroller Brad Lander. “The impacts of the climate crisis are playing out in real time, with more frequent hurricanes, flash floods, intense heat waves, and deteriorating air quality jeopardizing our planet and our portfolios. Excluding pipelines and LNG terminals from future investments will help mitigate the systemic risks that climate change poses to the global economy and to New York City’s public pension funds.” “Comptroller Lander has taken a big step to improve accountability on climate change and emissions. His action today starts a process to eliminate city funds going into downstream and midstream fossil fuel companies is a meaningful and prudent climate policy,” said Tom Sanzillo, Director of Financial Analysis, Institute for Energy Economics and Financial Analysis (IEEFA). “Midstream and downstream companies along with the entirety of the fossil fuel industry remain a financial poor performer. In 1980, the company held 28% of the market, today it is 3.3%. Comptroller Lander’s action today should provide him with much needed enhanced diligence to police an industry long in need of investor oversight. Fossil fuel companies, be they private or public equity performers, remain a sector in secular decline.” “The Wet’suwet’en Nation has been in a years-long struggle against a private-equity backed pipeline that runs through our home. Today’s announcement from Comptroller Lander signals to Wall Street that one of the largest pension funds in the United States will no longer allow private equity to make new investments in midstream projects like the one that threatens our Nation,” said Chief Na’Moks, Wet’suwet’en Hereditary Chief. “This policy is the beginning of the end of a dangerous status quo that allows the finance world free reign to invest in projects that destroy Indigenous land and harm all of us as we continue to face the consequences of investing in fossil fuels.” Media coverage here: https://lnkd.in/g9PqTdzZ NYC Comptroller press release here: https://lnkd.in/gN4gznpZ

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With the global market trend heading towards shorter settlement cycles, U.S. Securities and Exchange Commission chair stresses the need for the UK to kickstart compression plans even if some market participants raise concerns. #posttrade #settlement #regulation #sec #garygensler #uk #t1 #markets #trading

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"The article also conflates voting support with quality in its assertion that a low vote likely indicates that a proposal does not meet a fiduciary standard worthy of investor support. The right of shareholders to file proposals on emerging risks sometimes leads to a few investors, a minority voice, to demonstrate prescience and foresight that management and fellow investors may neglect at great cost. The poorly supported proposals later proved to be highly material." There are so many examples of shareholder proposals being prescient! I think of it as a service to companies to let them know what more traditional investors will be thinking about in the years ahead.

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Eric Lynch from our Partner Scharf Investments, LLC spoke to Lisa Bernhard from Reuters about the Federal Reserve's difficulties in controlling inflation and recent company earnings reports. He asked 'Is the Fed even driving the bus?' referring to the fact that monetary policy can't control all the inflationary pressures that are impacting the economy. Meanwhile, they discuss the stock market and how the big tech stocks are negatively influencing the direction of the S&P500 while other sectors are doing much better. Watch the full interview here: https://lnkd.in/ekg5FxyD

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The financial industry emphasizes investment skills in leadership selection. But leaders often struggle to balance analytical thinking with managing people effectively. In this video, my colleague Sébastien Page details five ways you can go beyond logic and methodologies to become an effective leader in asset management.

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In his latest whitepaper, “SOFR Dynamics Are Not What You Wished,” Marco Macchiavelli, Assistant Professor of Finance at the University of Massachusetts Amherst, reports that SOFR is heavily influenced by month-end “window dressing” incentives and fluctuations in Treasury net-issuance. These factors have little to do with what a LIBOR replacement should ideally capture—bank funding risk. As federal budget deficits grow and Treasury issuance increases, SOFR may face greater volatility. AMERIBOR, a credit-sensitive reference rate, avoids such distortions. It remains unaffected by these factors, making it a more focused tool for assessing credit risk. To read the full whitepaper, please visit: https://lnkd.in/eHRPm9kq #SOFR #AMERIBOR #Banking #RiskManagement

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Read a Jersey Finance article published in Advisor Perspectives, a New York-based platform for registered investment advisors (RIAs), wealth managers, and financial advisors: https://jsy.fi/3LGODtX #FamilyOffice #WealthManagement #Funds #FundManagers #AlternativeInvestments #CorporateServices #Tokenization #Blockchain #DistributedLedgerTechnology #DigitalAssets #DigitalAssetManagement #PreciousMetals #RealEstateFunds #InvestmentFunds Elliot Refson  Philip Pirecki

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SPAC Feed: The Director of the SEC’s Division of Corporation Finance (the “Division”), Erik Gerding, shared his views on the state of… - https://lnkd.in/evjUp4WC #SPACs #SPACNews #SPAC #IPO #markets #news #capitalmarkets #trends #goingpublic #finance #business

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Mercedes Tunstall discusses the Consumer Financial Protection Bureau's recent Price Complexity in Laboratory Markets report and Supervisory Highlights; James Frazier covers the U.S. Department of Labor's new final rule regarding fiduciary investment advice; Peter Malyshev explains how Footnote 195 in the CFTC rules had an impact on swap transaction documentation; Alix Prentice takes a look at the UK’s Accelerated Settlement Taskforce recent report on reforms to the settlement cycle; and more in this week's FinancialServices newsletter. Read here: bit.ly/3UnKHSY

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Most read paper "Leveraged speculators and asset prices" by author Wenxi Jiang in Review of Finance, Volume 28, Issue 3, May 2024, Pages 769–804, https://lnkd.in/e6SYvqDT Published: 31 October 2023 Abstract I test the hypothesis that the use of leverage by market speculators can increase the likelihood and magnitude of crashes in asset prices. Using a direct leverage measure derived from US public filings, I find that (1) stocks held by highly leveraged hedge funds subsequently have more negatively skewed returns than stocks held by less leveraged funds and (2) upon extremely negative earnings surprises or funding liquidity shocks, stocks owned by high-leverage funds exhibit abnormal price declines and subsequent reversal. Consistent with the fire sale and contagion hypothesis, high-leverage funds tend to reduce the position following negative news about a stock, and such selling can extend to other stocks in the portfolio, increasing the crash proneness of the stocks they hold. JEL G12 - Asset Pricing; Trading volume; Bond Interest RatesG23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investors https://lnkd.in/exwJK9qT

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Managing Volatile Markets with 0DTE Options w/ Cboe Global Markets Join us for an in-depth session on navigating market volatility using SPX and VIX options and other essential tools Date & Time: 🚨NOW🚨 Register & Watch Here: https://lnkd.in/eEY6jbdS

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Curious about the market's rollercoaster ride in August? From initial sell-offs to a rally, the economy's twists and turns kept investors on their toes. Watch the latest Market Thoughts video from Commonwealth CIO Brad McMillan to hear what’s next: https://bit.ly/3Xa6L4Z #marketupdate

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