The first quarter of 2016 has been marked by additional monetary easing by major central banks venturing further into negative interest rates and direct credit easing in response to a weakening global economy. It is a symptom of the ongoing global debt default that to support the current market valuations (and avoid a crisis of confidence),...read more
Developing currency management strategies, and executing on them, is an integrated and multipart process. Market positioning, capital flows, interest rates, geopolitical risks, economic fundamentals, technical analysis (and the list goes on), collectively contribute to currency direction. Experienced currency managers tend to increase their...read more
Within the first few weeks of 2016 the Canadian dollar has dished out pain and joy in abundance. The irony is that within a single month both bulls and bears experienced these emotions in extremes. The currency first fell dramatically in the early part of January only to fully reverse by early February.
How does one manage these risks...read more
There's an old joke in economics that goes: "The questions never change, but the answers always do". The unconventional answers that central bankers have developed over time to solve the lack of inflation (or in some cases deflation) are Quantitative Easing (QE) and Zero/Negative Interest Rate Policy (...read more
What is Signature Tactical Bond Pool?
The new Signature Tactical Bond Pool is a globally diversified fixed-income portfolio that has the flexibility to respond tactically to shifting market conditions and ability to find the best opportunities to add risk-adjusted alpha. Our goal is to provide better returns than the...read more
Fixed income risk management – the most important lesson
As we wind down our active positions in 2015, it is important to reflect upon our performance, revisit our principles, plan for 2016 and position the portfolios accordingly for the coming year.
The year 2015 was a difficult one for fixed income active...read more
Recently it was announced that the Quebec government will be providing Bombardier with much needed new capital. The struggling CSeries commercial jet program will be moved into a joint venture (JV) and the Quebec government will contribute $1 billion into this JV in exchange for a 49.5% interest in the company. This cash contribution will be...read more
Valeant Pharmaceuticals comes close with a business model based on serial acquisitions and a lack of clarity on true underlying sales trends. With sales growth seemingly dependent on drug price increases and unique distribution relationships, and adjusted EPS bolstered by draconian cost cutting, the company’s real margins and cash flows and the...read more
The past month has been volatile for the health care sector in general, and for Valeant Pharmaceuticals specifically, with the stock down over 50% from the peak in August and approximately 20% year to date. While some of the issues impacting Valeant are relevant to the entire sector (pricing and U.S. government headline risk), many of the...read more
There is no single India. I've come across this theme a number of times over the years, but never as notable as my recent visit to the land of the tiger. I didn't come across a tiger but did cross paths with motorists and cyclists that made crossing paths with a tiger look like an attractive alternative. States, or provinces if you wish, are...read more