Viewpoints on Current Issues
Beyond Banks: The Emerging Opportunity in European Direct Lending
Why the opportunities being created by banks’ partial withdrawal from lending may offer attractive potential returns.
2014 Global Market Outlook
When looking at the 2014 Global Market Outlook, one dominant theme crops up time and again. Politics. But amid the political uncertainty lies potential opportunity. This year will be a time for active investors to prove their worth to clients, to find pockets of value that might otherwise remain hidden.
Protecting Plan Beneficiaries From Sponsor Bankruptcy
BNY Mellon's ISSG discusses strategies for plan sponsors to consider for protecting beneficiaries from the risks of companies declaring bankruptcy.
A Renewed Emergence of Creative Destruction in Technology
The Boston Company's Core Research Technology Team argues how mobile devices, cloud computing and data analytics are creating new equity opportunities in the technology sector.
The Lords of Finance Rise Again: Central Bank Signals and the Outlook for Bond Yields
Newton's Paul Brain looks at bond investors' hyperfocus on central bank signals and the main factors that could drive bond yields higher over the next months.
Retirement Reset: Next-Generation DC Solutions with Non-Traditional Components
BNY Mellon's Retirement Group head Rob Capone shows the improved risk and return profile of DC solutions that increase allocations to emerging markets and liquid alternatives as well as inflation-hedging real assets.
A First Perspective: The Transformational Influence of "Big Data" on the 21st Century Global Financial System
BNY Mellon's Chief Global Markets Strategist Jack Malvey and team look at the potential impact of big data advances on markets and investing.
European Banking Changes Create New Opportunities for Direct Lending to Mid-Sized Companies
Alcentra describes new credit market entry points in Europe as banks pull back from lending to mid-sized businesses, creating a direct lending opportunity for institutional investors.
Lessons from the Financial Crisis Four Years On
Standish Chairman Emeritus Ted Ladd interviewed 40 large institutional investors to discover how their investment behavior has changed four years after the financial crisis.
The New Liquidity: Investment Implications of Structural Market Changes
BNY Mellon investment boutique traders look at regulation- and technology-driven structural changes to market liquidity in the U.S. and what they mean for institutional investors.
The U.S. Election Effect: Key Considerations for U.S. Equity Investing
The Boston Company looks at how U.S. presidential elections have affected equity markets in the past and why this year's experience might be different.
Global Reset: Rethinking Investment Approaches for Sovereign Institutions
BNY Mellon investment professionals discuss new investment models for sovereign institutions in a changing world with a senior sovereign fund advisor.
Volatility Targeting May Miss the Mark
ISSG Senior Investment Strategist Ralph Goldsticker looks at why volatility targeting strategies might not perform as well in the future as they have over the last 20 years.
Potential Beneficiaries of a U.S. Manufacturing Renaissance
The Boston Company argues that changes over the past decade have made US manufacturing more globally competitive and that we may have reached a tipping point for a revival.
Stock Markets vs GDP Growth: A Complicated Mixture
WestLB Mellon's Chief Economist Holger Sandte takes a fresh look at the relationship between GDP growth and stock markets, demonstrating that high growth does not necessarily correlate with equity outperformance.
In Pursuit of the Emerging Markets Consumer
BNY Mellon ISSG senior strategists look at a new thematic approach to gaining equity exposure to emerging market consumers and caution that the sector looks potentially expensive.
The Power of Dividends: Global Equity Income Investing
Newton makes the case for equity income investing, arguing that global dividend yields are attractive at the moment relative to other sources of investing income.
Reconstructing Bond Investing to Align with New Global Debt Realities
Standish discusses a new World GDP Index they worked with Barclays to create, which better reflects the new global debt realities than issuance-weighted indexes.
A Perspective on Risk and Return in a Deleveraging World
Newton argues that we are in a historic environment of deleveraging and low interest rates, calling for an active and flexible investment approach with a focus on absolute return, income generation and unconstrained global investing.
Zen and the Art of Liquidity Maintenance
Likening the stock market to a high-performance car engine, the ISSG's Bob Jaeger argues that reliable liquidity comes from long-term investors with strong nerves to withstand price volatility rather than high-frequency traders with very short investment horizons.
Rising Uncertainty for China
Standish comments on China's challenges transitioning from an export-driven model of growth to one based more on domestic consumption, while seeking to reform its financial system and social safety net.
Is Hedging the New Diversification?
ISSG Senior Investment Strategist Bob Jaeger discusses the differences between diversification and hedging, warning that investors sometimes underestimate the costs of hedging, while overestimating the protection provided.
Burnin' Down the House: Straight Talk on Tail Risk
ISSG Senior Investment Strategist Ralph Goldsticker argues there is no portfolio equivalent of fire insurance that will protect all investors at the same time for a reasonable price. He discusses how tail risk hedging works, the trade-offs involved, and how the costs are determined.
Private Market Opportunities in Distressed Debt
Private equity specialists from Siguler Guff discuss historic opportunities in distressed debt, as the unwinding of the huge debt overhang in advanced economies is leading to pockets of forced selling at depressed valuations.
Real-Return Investing in a Volatile World
Amid heightened volatility, Newton argues real return strategies have greater flexibility and range than benchmark-constrained approaches to seek opportunities across asset classes and regions as conditions change.
Fixed Income Absolute Return Amid Sovereign Debt Uncertainty
Paul Brain, Newton's investment leader for fixed income, and Colm McDonagh, head of emerging market fixed income at Insight, discuss the potential benefits of fixed income absolute return approaches against the backdrop of low interest rates, heightened market volatility, and sovereign debt concerns.
Life in the Time of Debt: Opportunities and Risks in an Age of Global Rebalancing
Investment professionals from across BNY Mellon Asset Management's global boutiques share their independent perspectives on the future of markets and economies in a historic period of global deleveraging, rebalancing and resetting.
Potential Implications of a U.S. Credit Event
Investment professionals from Standish believe the U.S. Congress will ultimately raise the debt ceiling, but discuss the potential implications of a credit default on the US economy and global financial markets.
The Impact of Japan's Crisis on the Global Power Supply and Beyond
The Boston Company looks at the possible spillover effects from Japan's recent crises on global energy markets, basic materials markets and manufacturing.
Taking the Pulse of Inflation Around the World
As global economic activity picks up and energy and food prices rise, investment experts across our specialist boutiques offer their independent perspectives on inflation risk around the world.
Eurozone Partners Likely to Stay in Marriage for Better or Worse
With sovereign debt problems casting doubts on the future of the eurozone, Standish Global Macro Strategist Tom Higgins says a break-up of the European marriage is unlikely, since both the fiscally weaker and stronger members have interests in keeping it alive. However, structural reforms are needed to ensure greater fiscal discipline.
The Power of Dividends: Global Equity Income Investing
Amid modest return expectations for most major asset classes, James Harries of Newton discusses why investors are rediscovering the potential power of reinvested dividends as an important part of the pursuit of long-term total returns. Focusing on dividend yields, he says, can also be a useful barometer for identifying outperforming companies with efficient capital allocation and cash flow management.
Don't Know What You've Got 'Til It's Gone: The Sources and Uses of Liquidity
Debunking myths about the supply and demand of market liquidity, Bob Jaeger of BNY Mellon's Investment Strategy and Solutions Group argues that the most important source of liquidity is unleveraged contrarian investors who are willing to take the other side of an overcrowded trade. He warns that the growing homogenization of market participants is endangering the kind of investor diversity that is a critical key to preserving reliable sources of liquidity.
Financial Regulation Altering the Cash Management Landscape
BNY Mellon Cash Investment Strategies looks at the potential supply and demand mismatch of shorter-maturity securities as new regulations require money market mutual funds to hold more highly liquid, short-term securities, while Basel III regulations encourage banks to focus on longer-term debt.