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News & Research
Most Recent News & Research
The current high levels of interest rates and the deep inversions of sovereign yield curves have given investors much concern about the potential negative implications for economic growth.
As hedge funds pile up short Treasury future positions like it’s February 2020, certain parts of the financial markets are getting nervous that we could be in for a repetition of the liquidity crisis seen in early March that year.
Analytics | Portfolio Risk Management
Why Treasury yields keep rising, causing pain for stock-market investors
“One could say that Treasury yields are simply returning to their natural equilibrium,” said Christoph Schon, the U.K.-based senior principal of applied research at Qontigo, a financial analytics and index provider. A nominal 10-year yield of 4.3% “seems appropriate” when considering current inflation expectations and where Treasury rates have historically traded.
Analytics | Portfolio Risk Management
The improbable hedge: Protecting against rising rates with high yield bonds
High yield bonds have significantly outperformed higher rated debt in the first seven months of 2023, posting strong positive returns, despite a considerable rise in interest rates and concerns about the health of the banking system earlier this year.
Christoph Schon from our Applied Research team recently joined an ETF Stream roundtable on thematic ETFs. Together with colleagues from the industry they discussed the importance of index construction and theme selection.
Thematic indices can offer diversification and market-beating returns, in some cases by using innovative index methodologies, says Christoph Schon at Qontigo.
Despite its main association with online gaming and social media, the Metaverse is also providing a virtual platform for industries to employ technologies aimed at improving efficiency, controlling supply chains and monitoring risk-management processes. The STOXX Global Metaverse Index is designed to capture the pioneers developing those applications.
The recent collapse of several banks has sparked fears of a 2011-style “doom loop,” in which losses in the financial sector spread to the wider economy. So far, contagion has been limited, but a further deterioration in credit quality could result in drawdowns across all sectors.
The recently launched STOXX Global Metaverse Index uses a sophisticated methodology to screen those companies with the most relevant patents in technologies associated with the Metaverse. This allows investors to target innovators whose products and services are likely to be leading the transition to the virtual world in the coming years. A new Qontigo whitepaper explores the index in detail.
In this paper, we explore the rationale and methodology behind the construction of the index. We start by explaining the concept of megatrends and how they can be captured through thematic indexing, using a multifaceted approach. We look as well at the index performance before concluding with an outlook on the opportunities for the Metaverse in the years to come.
The market is currently driven by the central banks. According to Christoph Schon, Senior Principal in Applied Research at globally integrated index provider Qontigo, “What we currently see is the tech market being driven by monetary policy and the response of the central banks to inflation and the job market.”
Analytics | Portfolio Risk Management
Stocks finish with second straight loss as Treasury yields grind higher
Christoph Schon, Senior Director of Applied Research at Qontigo, said the current correlation between stocks and bonds is really of concern to multi-asset investors. “Stocks and bonds (are) moving in the same direction, which we haven’t really had in a very long time,” said Schon.