Educate yourself with new research from CFA Institute
There is plenty of new research from CFA Institute which is sure to provide material suited to everyone’s interest. Have a look at these options already available online.
Investment Risk Profiling: A Guide for Financial Advisor, 1 PL Credit
Defining the appropriate risk balance for each client is a key element to a rewarding relationship with the client. This is a comprehensive study on what to take into account when developing a suitable risk profile for a client. It takes into account both financial and behavioral elements as well as the regulatory framework. Find out best practices while allowing also appropriate professional judgement. Discover how commercial risk assessment tools can be incorporated into the portfolio development process.
Authors: Amy Hubble, CFA, John E. Grable, and Robert W. Dannhauser, CFA (Radix Financial, LLC, University of Georgia, and CFA Institute
Looking under the Hood of Active Credit Managers, 2 PL Credits
Explore an extensive analysis of actively managed credit funds. According to the research credit long–short managers tend to have high passive exposure to the credit risk premium. In contrast long-only managers that focus on high-yield credits provide less exposure to the credit risk premium than do their respective benchmarks.
Authors: Diogo Palhares and Scott Richardson (London Business School and AQR)
When Managers Change Their Tone, Analysts and Investors Change Their Tune, 2 PL Credits
Especially topical at this time of phone meetings and computer conferences, an article on how the spoken language and chosen words give hints on the future of the company. The negativity of managerial word choice (managerial tone) in conference calls is a telltale indicator of a company’s future. Specifically, increases in negativity strongly predict lower future earnings and increased uncertainty, whereas decreases in negativity only weakly predict the opposite.
Authors: Marina Druz, Ivan Petzev, Alexander F. Wagner, and Richard J. Zeckhauser (Flex, Swiss Rock Asset Management, University of Zurich, Harvard University)
The Equity Differential Factor in Currency Markets, 2 PL Credits
The authors show that the differential in trailing equity market performance across countries strongly predicts the cross-section of currency returns, however, the equity differential factor cannot be explained by traditional factors and produces a statistically significant alpha in excess of them. Its performance is remarkably consistent and robust to different formulations. The research provides evidence that investor demand for outperforming equity markets probably contributes to this effect.
Authors: David Turkington, CFA, and Alireza Yazdani (State Street Associates)
Decentralized Efficiency? Arbitrage in Bitcoin Markets (In Practice), 0.25 PL Credits
The bitcoin market is already a USD 0.8 trillion market. Do professional arbitrage traders have opportunities to profit in the bitcoin markets? The authors suspected that because bitcoin market is relatively new and is dominated primarily by individual investors. In addition, inefficiencies in trading might exist that institutional traders could exploit. The authors tackle this question from different angles on this relatively new area of trading.
Authors: Sinan Kruckeberg and Peter Scholz (Hamburg School of Business Administration)