Universities: The Problems with Academic Conglomerates

Major research universities are struggling with the forces of rising tuition, demographic changes, online learning growth, pressure on research funding, volatile endowment earnings, and overall dissatisfaction with graduate employment opportunities. All these are trends with significant risks for university departments, colleges, and central administrations. In practicality, research universities are similar to corporate conglomerates in structure, Read More…

The Mystery Behind Global Bond Paradox

Let us discuss how hedging can enhance low local yields. Yields on the German bund remain stuck below 50 basis points while the Japanese government bonds yield virtually zero basis points. U.K. gilts on the other hand yield only 125 basis points. Does this mean non-U.S. bonds such as the ones mentioned above hold any Read More…

Banks: A Tale of Necessary Transformation

Investors have maintained a rather negative view of the banking sector; banks hold equity valuations now above book value, but only slightly. Prior to the recession, the price-to-book ratio of banks in developed countries was circling around 2, but since then banks have had average price-to-book ratios of less than one. Additionally, banks in developing Read More…

Should the Minimum Wage Increase in the U.S.

There are many factors that must be carefully taken into account when choosing a position on whether or not the minimum wage should be raised. One must consider the positive and negative moral and scientific outcomes that could occur due to an increase in the minimum wage. Keith Knutsson of Integrale Advisors states “Although this Read More…

Equity Derivatives No More – Warren Buffett

Let’s take a deeper dive into Warren Buffets portfolio. Equity-index put options written by Berkshire Hathaway Inc. have started to expire and the remaining options will expire by January 2026. His firm originally initiated these deals between 2004 and 2008 to bet that stock prices would rise in the long run. Not only that, but Read More…

Why is the Japanese Yen Considered a Safe Haven Currency?

A risk-off can occur when global investors’ behavior becomes more risk-averse or economic fundamentals become more uncertain. The yen has shown past historical trends of serving as a safe haven currency in times of a risk-off (2008 financial crisis, 2010 distressed European market, Japan earthquake and the Italian elections). During times of increased global risk Read More…

Trade War Risks Lead To Gradual Rate Hikes

The Federal Reserve exemplified strong economy warranted continued increases in the benchmark policy rate while citing tensions rising with emerging-market turmoil and the trade war. As growth gets a boost from tax cuts and additional government spending, U.S. central bankers are trying to keep the economy on a substantial path. Minutes from the last Fed Read More…