Long-term Interest Rates Lower Than At any time Since the South Sea Bubble of 1720!

09:23 11 Comments

Another Sign of Bond Market Madness?
It’s not just short-term interest rates that are at historic lows. There is now tangible evidence that long-term interest rates have touched new historic lows (Exhibit 1). Surprisingly few people took notice of the UK Debt Management Office’s (DMO) recent repayment of ‘undated’ debt, some originating from as far back to the 1720’s, and subsequent issue of new 50 year bonds. These transactions do, however, send a powerful signal. They should be seen as a warning that interest rates, both short and long-term, are not only low in absolute and real (inflation adjusted) terms. But they are now lower than at any time in the last 300 years!!!

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GIPS and Alternatives: CalPERS Takes Notice, Others Likely to Follow

10:53 0 Comments

With over 30 country sponsors and broad support from the industry, the Global Investment Performance Standards (GIPS®) are seen by many investors as a required way of doing business for any investment managers they hire. However, alternatives managers have lagged behind traditional managers in claiming compliance with the GIPS standards. Some of the reasons we’ve heard in the past are that alternatives are too complex, GIPS doesn’t cover these kinds of strategies, and our clients are not demanding it.

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