Brian Bollen's Blog

JSE looks to the futures

The Johannesburg Stock Exchange (JSE), Africa's largest exchange, says it has officially launched JSE Eris Interest Rate Swap (IRS) Futures, based on the Johannesburg Interbank Agreed Rate (JIBAR) and denominated in South African Rand (ZAR). 

The product will follow the standard South African swap market conventions while using the Eris Methodology, allowing the contracts to replicate the cash flows of over the counter (OTC) swaps. The new product offering will be available for trading by all registered Interest Rate market members and their clients and will be cleared through JSE Clear.

2% inflation: Mission impossible?

I've just a read a fascinating article on inflation in The Sunday Times this morning (August 30 2015), by Dhaval Joshi, chief European investment strategist at BCA Research.

In it, he discusses the attempts by the world's central banks to achieve 2% annual inflation. He argues that while their intentions are laudable they may have set themselves a task that is ultimately impossible.

“The trouble is that persistent inflation is up against a much stronger primordial force. Capitalism's natural state is for prices to be steady or mildly declining. People are constantly discovering better - cheaper - ways of making and doing things.

“History proves the point: between 1689 and 1912 consumer price inflation averaged 0.29% in Britain (here he produces a Bank of England chart to bolster his argument). In truth, peristent inflation is unique to a brief period of the late 20th century, 1965-2007. But this period encompasses much of our own lifetime, so we think of it as the norm, rather than the aberration it really is.”

His conclusion is: achieving persistent 2% inflation is mission impossible.

My finding this fascinating demonstrates that I really do need to get out more, but if his reading is correct, to me that means interest rates staying where they are not just for the decade that I predicted and prescribed back in late 2007, not just for the next five to 10 years I've been predicting and prescribing over the last 12 months, but well into and beyond the foreseeable future. Wouldn't that be interesting (except for savers)?

Western declines a knee-jerk reaction

The declines in Western stock markets have been a knee-jerk reaction in thin summer trading, says John Chatfeild-Roberts, head of the Jupiter Independent Funds Team. In a just-issued short note, he comments on events in China and suggests where to find value once the dust has settled.

Australian asset managers brace for change

Australian asset managers and their counterparts in Asia Pacific (APAC) face on-going pressure to develop customised solutions for institutional clients who are shifting portfolio management in-house at an ever increasing rate, a new report by State Street Corporation has found.

JPMorgan scoops WA Super mandate

JP Morgan Investor Services has been appointed as custodian of West Australia-based WA Super's investment portfolio.

EurexOTC Clear welcomes HSBC France

HSBC France is a new user of EurexOTC Clear for Interest Rate Swaps (IRS). It is connected as a direct clearing member and has already cleared its first transactions.

We're all doomed; Or Maybe Not

Mint – Blain’s Morning Porridge

“We’re doomed, all doomed….... I never doubted you for a moment!“

Put your rally boots on and Spend, Spend, Spend! We’re all lottery winners as the strong US stock performance yesterday sends “going higher” signals. Short-term anyway… I remain somewhat sceptical and suspect this is not over yet...

Slower China growth creates stock-pick opportunities

The market’s focus on risks to emerging markets (EM) from slower Chinese growth creates opportunities for stock pickers, according to Ross Teverson, Head of Strategy Global EM at Jupiter Asset Management.

Fear is the mind killer

Mint – Blain’s Morning Porridge 

I was thinking of starting with the Hokey-Cokey this morning: “up, down, shake it all about..” but that was just too obvious to describe the current China stock markets. More importantly… I’m reliably informed this is going to be a “very important” day for US stocks.

RBC IST recruits Don D’Eramo

RBC Investor & Treasury Services has recruited Don D’Eramo as managing director, head of distribution & product development, securities finance, for its treasury & market services activity.

Classic cars top Coutts passion Index

Classic cars* increased in value by 40% during 2014, and have increased in value nearly four fold, since 2005, according to the latest edition of the Coutts Index. In its second year, the report shows that while passion investments have increased just 0.8% during 2014, this masks the diversity of returns of the various underlying categories which have increased overall by 80% (local currency terms) since 2005.

In the middle of a drought, the water commissioner drowns

Mint – Blain’s Morning Porridge

“Can you believe it? We’re in the middle of a drought and the water commissioner drowns....“

Activate Capital mandate for BNY Mellon

BNY Mellon has been appointed as account bank for the Activate Capital lending platform (Activate Capital). This is a €500m home-building joint venture between the Ireland Strategic Investment Fund (ISIF) and KKR (Kohlberg Kravis Roberts, best known for its trailblazing leveraged buyout exploits).

Global crisis in the ascendant

Mint – Blain’s Morning Porridge

“Great, she brings home a sword. If you ask me, she should have brought home a man..“

SGX consulting on affiliate segregation

Singapore Exchange (SGX) is consulting the public on the proposed introduction of Affiliate Segregation where collateral of an affiliate of an SGX Derivatives Clearing (SGX-DC) member is protected if the member defaults on its own contracts. The affiliate’s positions may also be transferred to another SGX-DC member.

Help to Sell: Its Time Has Come

We've heard endless amounts of hot air about help to buy, to kickstart the UK housing market. How, though, about help to sell?

Four out of five invest in alternatives

Four out of five institutional investors invest in at least one alternative asset class, according to research for Preqin’s latest Investor Outlook.

AFMA hails T+2 plans

The Australian Financial Markets Association (AFMA) says Australia will move to T+2 settlement for fixed income products on March 7 2016.

Shake-up coming for super industry?

Mercer is predicting a major shake-up for Australia's super funds industry, following the launch of its new platform Mercer Edge.

Mourning for GoT

After watching all five series of Game of Thrones from start to finish, for the eighth or ninth time, after reading all seven volumes and 1.7 million words of the source books by George R R Martin, Margaret and I find ourselves televisually bereft. There's just nothing like it.