Investments

There are important distinctions between 2020 and that meltdown 10 years ago, writes John Taft.

The firm expects a second wave of opportunities, particularly in commercial mortgage-backed securities and collateralized loan obligations.

The poor showing may lead investors to question why they’re paying some of the highest fees in the money management industry.

Risk assets have benefited from stimulus programs enacted to shore up the economy as the fallout from the coronavirus continues to wreak havoc.

Intuitive Advisor is now among the most affordable options for digital investing with human advice.

CEO Larry Fink announced a new focus on ESG in January, however the coronavirus has pushed a separate set of urgent issues into the forefront.

The firm’s chief investment officer spent as much as a third of that on high-yield funds, according to people with knowledge of the matter.

“People are just saying, ‘Why should I pay for an active manager when most of them lose to the benchmark anyway?’ This is a big deal,” an expert says.

Just as in the wake of the 2008 financial crisis, experts say there's rising interest in the products among advisors.

While the central bank’s support may help keep credit flowing amid the coronavirus, “it doesn’t necessarily improve the outlook for bankruptcies.”

The $349 billion stimulus package from the Small Business Administration provides loans to cover payroll, rent and utilities for up to eight weeks.

“I do believe that clients sometimes get too caught up in expense ratios,” an expert says.

The fund ditched its tail-risk protection weeks before the coronavirus sent stocks into a tailspin, according to people familiar with its decision.

The fund will track industries such as cloud technologies, remote communications and cyber security, according to an SEC filing.

The smart-beta pioneer and sub-advisor to money managers has re-calibrated its forecasts after the coronavirus-induced crash reshaped markets.

The firm sees "light at the end of the tunnel," says Silvia Ardagna, managing director in the investment strategy group within the firm's private wealth management unit.

The firm's wealth management unit saw new demand for credit, according to CEO Sergio Ermotti.

“This market environment is a very good one for investors to do a self-awareness check,” an expert says.

If the price declines enough, it can breach a barrier where the investor starts suffering one-for-one losses all the way to zero.

Risk managers must be especially vigilant about the bets their traders are making to profit from current market dislocations brought on by the coronavirus.