Yield curve inversions have traditionally been a foretelling sign of impending recessions. To explain the idea of a yield curve, one needs to understand what exactly a yield is. A yield to maturity, or simply bond yield has multiple interpretation, the simplest being – it is the return an investor realises
Back in 2010, Goldman Sachs was sued by the US Securities and Exchange Commission over allegations that it had misled clients over the mortgage backed securities it had sold. Internal Goldman emails surfaced showing how arrogant self-interest bankers had left their clients out in the cold to save their
Turbulence in the global financial markets, particularly in the technology sector, saw equity sell offs, oil prices tumble, and dollar swings this week as concerns over the global economy intensified as investors fear growing trade tensions and weak corporate earnings. FAANG stocks, which had previously powered the recent post crisis
The Economist has called them “an addiction to corporate cocaine.” Reuters has called them “self-cannibalization.” The Financial Times has called them “an overwhelming conflict of interest.” In an article that won the HBR McKinsey Award for the best article of the year, Harvard Business Review has called them “stock
US crude oil prices entered a bear market [defined as a 20% drop from a recent high] on Thursday as concerns of tight global supplies eased. This follows Washington allowing eight countries to continue buying Iranian crude, softening the blow of new international sanctions on the nation. In addition to
If you want a good example of how volatile biotechnology stocks can be, look no further than Puma Biotechnology Inc. This cancer-focused biotechnology company was founded 8 years ago and went public in 2012 with shares trading around $10 per share. In 2014 that share price rocketed to +$260
Global Warming. Corruption. War. Poverty. These are all problems every human on the face of the earth must deal with, and it is something everyone should be tackling. The financial industry has decided to combat these problems with Environmental, Social and Governance (ESG) Investing. It is investing standards that indicates
Dark pools. The words invoke an atmosphere of secrecy and evil, harkening back to myths of murky waters and ancient terrors that lurk within. Throw in the modern element of trading and most imagine clandestine deals involving dubious characters straight out of The Godfather. The reality is less intimidating. Dark
Since the fiscal stimulus of tax cuts that the Trump administration has implemented this year, the US economy on the surface has been doing great. It has notched a 4.1% annualized growth rate for Q2, which is considerably faster than the 2% growth rate that has been standard since
It is a well-known fact that when interest rates are hiked, investment banks increase their profitability due to their massive cash holdings. Increasing the interest rates directly increases the yield on the cash it holds, and the proceeds go directly into the income statement. Furthermore, interest rate hikes tend
We’ve all heard the age-old advice; save up for a rainy day, spend a little less, invest that money and have enough to retire. Your favourite car, that house in the countryside, that trip to the Maldives you’ve been planning since the days of eating lunch at
Despite the ongoing trade war tensions in Asia, there is large growth potential for startups as venture capital firms eye up the region.