Inflation: The Challenge for Latin America Investors

In many Latin American countries, fast recovery from the financial crisis has come at the cost of an ongoing battle against inflation. Government responses have varied, and the interaction of inflation pressures, interest rates and currency valuations has created a difficult situation for institutional investors. Powerful statistical tools offer investors the opportunity to stay ahead of inflation.

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New Measures of
Systemic Risk

Systemic risk has emerged as a critical challenge for asset owners and managers around the world. But what exactly is systemic risk? Can it be measured? Can financial professionals deploy an early warning system to identify it and defend against it? New quantitative research approaches are answering these questions and opening up a whole new field of portfolio and risk management.

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Turbulence, Systemic Risk
and Dynamic Portfolio

History shows that turbulence is inherent in financial markets, making risk management a challenge. Previous attempts to measure this turbulence have focused on volatility and ignored the impact of correlations between investments. Risk management groups are now looking at these correlations to help clients monitor the turbulence level of the market.

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The State Street Investor Confidence Index® measures the attitude of investors to risk. Developed by Harvard Professor Ken Froot and Paul O'Connell, President and Partner at FDO Partners, LLC., the Index uses the principles of modern financial theory to model the underlying behavior of global investors. Unlike other survey-based confidence measures that focus on expectations for future prices and returns, the Index provides a quantitative measure of the actual and changing levels of risk contained in investment portfolios representing about 15% of the world's tradable assets.