Nuances of the Barclays Fixed Income Indices

Most corporate investors use benchmarks to express their desired asset allocation, to guide their asset managers’ portfolio construction process and, on an ex-post basis, to measure their performance. Well known indices such as the S&P 500 or the Barclays U.S. Aggregate are generally used as benchmarks. In BS (balance sheet) fixed income investing, the most …

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Limits of information for trading and investing

Bad advice to avoid “It is consistently taught in business schools across the world that the more information we absorb, the better investment decisions we will make.” It makes sense, right? But it’s wrong. The above quote is a paraphrase of Adam Robinson when asked the question: “what is bad advice to avoid?” Enter Paul …

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Financial crisis headlines

Blast from the Past | Financial Crisis headlines as of October 7, 2008 Just some notes I took while things were unfolding. Many names live only in people’s memories now… September 2008 (S&P 500: -9.2%) September 7: FNMA and FHLMC are put under the conservatorship of the FHFA September 14: Bankruptcy of Lehman Brothers September 14: …

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How does selling bonds affect portfolio yield?

I’m going to give you a rule of thumb for estimating portfolio yield after rebalancing (a.k.a., liquidating) your bond investment portfolio. If you don’t already explicitly know this rule of thumb, I am pretty certain that you have developed the intuition for it. However, here is the value add: teach this rule to your boss, …

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Books: Zero to One | Peter Thiel

This book is a collection of ideas and reflections on the intersection of economics, culture, and technology. It also provides a framework to process and understand businesses, be them existing and established, or inception-stage ventures. One of the main concepts is that of horizontal versus vertical progress. Horizontal progress is making marginal improvements to existing …

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