October 2012

October 31, 2012

Robert Merton’s Approach for Macrofinancial Risks 罗伯特·默顿的主权信用风险模型

Traditional Macrofinancial framework vs. Robert Merton’s Macrofinancial Framework The traditional approach to measure sovereign credit risk is based upon the assessment of a country’s ability and willingness to service its debt, which takes into account key economic, socio-political, global market, and governance attributes of sovereign entities. Robert C. Merton proposed an alternative approach in this… Continue reading

Financial Modeling, Risk Management

October 24, 2012

Timberland Investments 林权投资

Institutional investors worldwide own approximately $60 billion worth of timberland, of which two thirds ($40 billion) is invested in the U.S., nevertheless, the principal owners of timberland are private, non-industrial landowners, with about $150 billion. Some investors classify timberland investments as private equity, as many of the commercial timberland deals have been made through private… Continue reading

Alternative Investments, Real Assets, Timberland

Timber Investment

October 23, 2012

High Yield Credit Opportunities Search (II) 高收益债券 (II)

Earlier this month, Bloomberg reported that high yield bond funds hauled in $3.63 billion in investor cash for the week ended September 19 with 40%, or $1.45 billon, of those inflows. The global high yield market, with approximately $1.3 trillion in size, as of third quarter 2012, continued to rally in the third week of… Continue reading

Fixed Income, High Yield Bonds

High Yield Bonds, Investment Research

October 19, 2012

Behavioral Portfolio versus Mean-Variance Portfolio

Investors that follow the mean-variance portfolio (MVT) theory (Markowitz, 1952) determine optimal aggregate portfolios on the efficient frontier by balancing risk aversion and return preference. Many investors have difficulty specifying their respective “optimal” ones at times, and some investors even have more than one level of risk aversion. That said, the MVT fails to address… Continue reading

Asset Allocation, Behavioral Finance, Financial Modeling, Portfolio Management

Behavioral Portfolio Theory, Mental Account

October 9, 2012

Updates on Investing in Singapore 新加坡投资环境更新

Being one of the few remaining nations with AAA rating and stable outlook, along with ongoing efforts in financial services industry, Singapore’s economic development and competitive tax regime have made the country a park for cash. Historically, Singapore is a highly developed market-based economy, along with Hong Kong, South Korea and Taiwan, Singapore is one… Continue reading

Emerging Markets

Investment Environment, Singapore

October 1, 2012

Expectations Investing – Be A Strategic Consultant 逆向估值与投资顾问的敏感性分析

Psychology plays a dominant and self-fulfilling role in successful investing and economic growth: if people think things will be positive in the future, they will spend and invest; if they turn pessimistic regarding the future, refusing to spend and go into their shells, growth will slow down. This is what economists call “animal spirits.” The… Continue reading

Behavioral Finance, Portfolio Management

Expectations Investing, Investment Consulting

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