Research

Investors need to understand that the Cboe Volatility Index (VIX) is not the same as VIX futures, and this has important implications when it comes to trying to hedge a portfolio with a long volatility approach. The VIX index itself is a fantastic indicator of 30-day implied volatility. VIX futures are simply the market’s best guess where the VIX index will be on settlement at that point in time.

Investors need to understand that the Cboe Volatility Index (VIX) is not the same as VIX futures, and this has important implications when it comes to trying to hedge a portfolio with a long volatility approach. The VIX index itself is a fantastic indicator of 30-day implied volatility. VIX futures are simply the market’s best guess where the VIX index will be on settlement at that point in time.

The managers identified a bond where the servicer was not correctly interpreting the payout. In this case, the servicer was paying the principal on the bonds to an insurance company before the senior bondholders. It was paying the insurance company for losses the insurance company had previously paid out on mezzanine bonds. Insurance recovery rights are called rights of subrogation. ESM bought the senior bonds and challenged the servicer.

The managers identified a bond where the servicer was not correctly interpreting the payout. In this case, the servicer was paying the principal on the bonds to an insurance company before the senior bondholders. It was paying the insurance company for losses the insurance company had previously paid out on mezzanine bonds. Insurance recovery rights are called rights of subrogation. ESM bought the senior bonds and challenged the servicer.

The belief this time is different from the past has always been the most dangerous of phrases for investors. However, this is where participants exist today. While it is true the excessive monetary liquidity has certainly changed short-term market dynamics; there is no evidence it has mitigated long-term consequences.

With the second quarter of the 2020 reporting season mostly behind us, and with markets testing “all-time” highs, do earnings support the bullish thesis? Such is the fundamental question surrounding the debate over the record deviation between “momentum” and “growth.”

In this case study we will take a close look at the large, liquid and mature $1.2 trillion U.S. senior secured corporate loan market. In this study, we present our case for loans in every rate environment.

In a previous post "Market Bubbles," I touched on George Soros' "theory of reflexivity." Interestingly, MarketWatch discussed with George why he no longer participates in the "bubble." The foundation of his argument comes from his previous work in "Alchemy of Finance."