Risk

Research shows concentrated financial risk as the world’s 30 G-SIBs have $59.759 trillion in exposures; the top 20 banks account for 83% of that total

One of the key reasons which makes multi-asset investing attractive are the generally low yields. As a result of the global financial crisis, central banks around the world have lowered their key interest rates and engaged in unconventional easing measures. In this environment, many investors have put on some sort of a “liquidity trade” that tries to exploit the impact that abundant liquidity will have on future asset class returns.

The California Public Employees’ Retirement System (CalPERS) today adopted a funding risk mitigation policy that will incrementally lower the discount rate in years of good investment returns, help pay down the pension fund’s unfunded liability, and provide greater predictability and less volatility in contribution rates for employers.

Fitch Ratings says in its latest Macro-Prudential Monitor that global credit growth is not likely to have a strong pick-up in 2015. Hence, macro-prudential risk indicators (MPI) could continue to trend lower with the highest risks still largely confined to emerging markets (EMs).

New research on the US bank and thrift sector from SNL indicates that profitability in the industry will improve but not reach pre-crisis levels. The inaugural edition of SNL’s 2015 U.S.