Risk

The evolution of public sector debt depends on a number of economic variables and how they interact. Within the Eurozone, German and French debt looks sustainable while Italy, Portugal and Ireland appear borderline.

According to John Gilbert, CIO of the Berkshire Hathaway’s subsidiary General Re-New England AM, French 10-year bonds should yield between 4.5% and 5%, closer to Italian and Spanish bonds rather than German ones. However, This opinion is not shared by the majority of the fund managers interviewed ...

Isn’t correlation in finance charlatanry? We analyze this question through 4 situations that have been observed on financial markets with final investors, asset managers and proprietary traders.

According to Jean Louis Monnier, head of European ILS at Swiss Re, direct investment in Insurance Linked Securities is a market reserved to qualified institutional investors which manage a minimum of 100 million dollars and which have the ability to evaluate the risk associated to these transactions…

According to Bruno Mathis from SterWen and Jean Delahousse, all institutions exposed on Lehman which have highly developed credit analysis tools are able to detect warning signs as soon as they come about and would have almost four months to take safety measures (CDS netting, security transfers, deleting credit line, etc.)