With central banks targeting short-term interest rates near zero and engaging in quantitative easing, will they resort to other monetary policy tools like yield curve control to further stimulate the economy? Yield curve control is when a central bank targets a longer-term interest rate and then pledges to buy the required amount of bonds to […]
While technological change is accelerating at a rapid rate, the financial system isn’t keeping pace, says Campbell Harvey, professor of finance at Duke University’s Fuqua School of Business. Traditional systems make it difficult for those trying to raise capital or invest. Yet new technology is coming to market that can resolve many barriers and dramatically […]
The volatility caused by the coronavirus pandemic made the first quarter of 2020 rough for many Canadian defined benefit pension plans. In early June, the Local Authorities Pension Plan Corp., which is mandated to invest with the Alberta Investment Management Corp., said it began the year with $50.6 billion in assets under management and ended […]
During the global financial crisis, the Alaska Permanent Fund Corp. implemented a new governance report to bring together all elements of its investment portfolio and communicate risk to the board, says Max Giolitti, the fund’s former head of asset allocation and risk, and current chief risk officer at Verus Investments. The work began by educating […]
With the coronavirus-induced shutdown causing ripples in public and private markets alike, infrastructure assets took a hit in the first quarter of 2020 — and the worst may still be coming. According to data from the EDHEC Infrastructure Institute, infrastructure assets experienced a sharp drop in returns in the quarter. The decline was driven by […]
With so much uncertainty on the horizon, should pension plan sponsors be preparing to operate in a deflationary or inflationary environment? In the short term, the economic environment will be deflationary, says Hugh O’Reilly, executive in residence at the Global Risk Institute, noting demand is down because people are staying home and not spending. “And […]
Last week marked the beginning of an unprecedented one-year program through which the Bank of Canada is purchasing corporate bonds. The program, originally announced on April 15, aims to support the corporate debt market’s liquidity and “proper functioning.” It involves TD Asset Management purchasing bonds through a tender process on the secondary market on behalf […]
With air traffic expected to drop by almost 50 per cent in 2020, institutional investors that use aircraft leasing as part of their investment strategies will see compelling investment opportunities, says Justin Bradburn, principal and head of aviation at CarVal Investors. Even when traffic rebounds, airline ticket prices will likely be lower for longer, he […]
Communication can be a challenge for pension plan sponsors and trustees when trying to remain focused on the long term, said Matthew Leatherman, director at FCLTGlobal, during a webinar hosted by the Canadian Investment Review on Friday. “Trustee directors need risk information in order to fully govern and oversee their organization in a long-term manner. […]
In times of crisis, many pension plan sponsors pull back on investing in private equity, including the secondary market, because they’re trying to assess their liquidity needs, says Joseph Marks, global head of secondaries at Capital Dynamics. But this pulling back often happens at a time when they should be putting their foot on the […]