Empati’s Post

Good Day! The final piece from our Multi Asset Indices product team as we delve into a look ahead in Equities. Read below to see some of our indices in action reviewing the key topics of 2024: DM vs EM - BFREE shows there is still opportunity in the EM markets. The Magnificent 7 rose an impressive 107% in 2023 and we can see how BM7T vs B500 is faring as we review concentration risk, or looking at the flipside using B500XM7. AI continues to be a topic for discussion and investment, highlighted by the performance of the BB US 20 AI Select Index. A different macro economic environment from the last decade opens the door to Systematic Factor Investment Strategies, which cater to a diverse set of economic conditions, eg BPPUS (BB Pricing Power Index) And finally Clean Energy / Renewables show signs of further demand through 2024, as regulatory environments support further climate adaptation solutions, as shown in BGSCE BB GS Clean Energy Index. All in all there is lots to digest, and as always do reach out if questions #Indices #equityinvestment #thematicinvesting #factorinvesting

Complacency? What complacency? The reporting season has triggered mixed emotions and repeatedly driven prices downwards – but it has also made investors increase their positions. By now, the US reporting season is coming to its end. According to data provider Refinitiv, more than 90% of the S&P 500 companies have released their figures. Read more in our latest “The Week Ahead”. #TheWeekAhead #earnings #markets #opportunity #risk #positivesurprise #revisions #tech *** DIRECT ACCESS TO THE DOCUMENT (pdf) ***

🌦️ New Blog Alert: Weathering Financial Storms - An Explainer on Weather Derivatives In today's rapidly changing climate, businesses across sectors are grappling with the financial implications of unpredictable weather patterns. From energy providers to agriculture, the need for effective risk management tools has never been greater. 📈 That's where Weather Derivatives come into play. 🔗 Read the Full Article Here - https://lnkd.in/diTRFu-U 📌 Key Takeaways: 1. Understand the mechanics of Weather Derivatives and how they differ from traditional insurance. 2. Explore real-world applications across various industries. 3. Gain insights into market size, evolution, and the impact of climate change on these financial instruments. This article is curated by Mohit Belvanshi 📩 For more in-depth insights on business and finance, subscribe to our newsletter. Stay ahead of the curve with exclusive content delivered right to your inbox. Alliance Knowledge Partners

Bloomberg partnered with riskthinking.AI to develop physical risk modeling. It is a strategic partnership to marry Bloomberg's extensive existing data, including company financials, supply chain, and physical assets, and riskthing.AI’s climate data and models. Join our discussion to discover the approach, methodology, and case study on how to perform scenario analysis across NGFS & other regulatory scenarios, considering both risk and opportunities. https://bloom.bg/3Q7HgiL #BloombergHK BloombergNEF

Navigating today's unpredictable landscape of financial markets demands precision financial data. In our latest article, Jim Mahn (Global Head of Product at TraditionData) explores how high-quality Over-The-Counter (OTC) data is more crucial than ever amidst ongoing inflation uncertainty. Detailing the impact of inflation on bond prices and the need for accurate market insights, Jim emphasises the importance of historical trade data in forming successful investment strategies. Discover how TraditionData provides precise data solutions, ensuring organizations have the tools necessary for informed decision-making amidst economic volatility. https://lnkd.in/ejFwVQDp #MarketData #TeamTradition #Inflation #FixedIncome #Economy #TradeData #OTC #OTCMarkets

Detailing the impact of inflation on bond prices and the need for accurate market insights, in our latest article Jim Mahn (Global Head of Product) highlights the importance of precision OTC trade data in forming successful investment strategies. Read the full article to uncover the keys to effective risk management and maximized trading potential. #TeamTradition #MarketData

Bloomberg partnered with riskthinking.AI to develop physical risk modeling. It is a strategic partnership to marry Bloomberg's extensive existing data, including company financials, supply chain, and physical assets, and riskthing.AI’s climate data and models. Join our discussion to discover the approach, methodology, and case study on how to perform scenario analysis across NGFS & other regulatory scenarios, considering both risk and opportunities. https://bloom.bg/3O5pwSm #BloombergHK BloombergNEF

Is there macroeconomic alpha ? What a weird question aint'it ? Defenders of the efficient market hypothesis, and strong believers in the religion of passive investment would probably boldly say :"pfffft, forget about it, everything is priced in by the market before you even started to blink, there is no alpha to harvest in macro data, full stop". As our quant team at QuantCube Technology loves that kind of challenge, in our latest newsletter, they picked up the glove. Focusing on macro regimes identified with our real time #macro #nowcasts tracking both #growth and #inflation based on alternative data, our research team has built a robust and very simple approach to protect capital at risk that can precisely interest buy and hold investors worried by crash risk. Yes, macro risk is most of the time rising with market risk, creating opportunities to harvest performance on the short side of the market. Following our macro regime quadrant approach recently advocated by MSCI Inc. it is possible to exhibit a #short #only (or a #hedging strategy) that despite bein activated less than 20% of the time is able to diversify market beta. Such an approach considered as highly difficult to execute, is a supplementary proof that macro regimes matter. When crashes are purely driven by non macro factors, albeit those events were rather seldom in history, QuantCube Technology has also looked for alternative data based solutions to track these episodes... but this is another story we will tell you in a further post. In the meantime, have a read to our latest newsletter and stay tuned. #macronowcast #alternativedata #macroregimes #hedging #capitalprotection

🌍📉 Geopolitical shocks significantly impact financial markets. J.P. Morgan Private Bank highlights that geopolitical risks are the top concern for 34% of investors in 2024. Events like the Russia-Ukraine conflict and rising tensions in the Middle East disrupt markets and investor sentiment. Moreover, shifts in global power dynamics and economic policies add to market volatility. At AlgoSight, we leverage AI to provide real-time geopolitical insights, empowering investors to navigate these complexities with confidence. Discover more at algosight.co.uk Read the full J.P. Morgan article: https://lnkd.in/eeShybju #Geopolitics #FinancialMarkets #Investment #JPMorgan #AI #Technology #GlobalEconomy #Finance #MarketInsights #AlgoSight #Startup

"Unlocking Opportunities: The Art of Market Making in Global Markets" In the dynamic landscape of global financial markets, market making plays a pivotal role in fostering liquidity and efficiency. As we navigate the intricacies of today's interconnected markets, understanding the significance of market making becomes paramount for investors, institutions, and the overall health of the financial ecosystem. The Foundation of Market Making Market making serves as the linchpin that connects buyers and sellers, ensuring a seamless flow of transactions. Traditionally associated with stock exchanges, its scope has expanded to encompass various asset classes, including currencies, commodities, and cryptocurrencies. The essence of market making lies in providing continuous buy and sell prices, facilitating smooth trades and reducing bid-ask spreads. Navigating Global Markets The globalization of financial markets has ushered in new challenges and opportunities for market makers. Operating in a 24/7 environment, global markets demand adaptability and real-time responsiveness. The ability to understand and navigate diverse regulatory frameworks, cultural nuances, and geopolitical dynamics is essential for success in this interconnected landscape. Technology's Transformative Role Technology stands at the forefront of the market-making revolution. Automated trading algorithms, artificial intelligence, and advanced data analytics have empowered market makers to enhance liquidity provision, optimize trading strategies, and mitigate risks. The integration of cutting-edge technology not only accelerates decision-making processes but also ensures precision and efficiency in executing trades across borders. Risk Management in Global Market Making Effective risk management is a cornerstone of successful market making, particularly in the global arena. Volatility, geopolitical events, and market shocks necessitate robust risk mitigation strategies. Market makers employ sophisticated risk models, stress testing, and scenario analysis to navigate the uncertainties inherent in today's complex financial environment. The Future of Market Making Looking ahead, the future of market making holds exciting possibilities. Continued advancements in technology, coupled with regulatory evolution, are likely to reshape market-making strategies. Enhanced market connectivity, increased automation, and a focus on sustainability will be defining themes for market makers as they continue to adapt and innovate. Conclusion Market making on global markets is an evolving art, requiring a blend of financial acumen, technological prowess, and adaptability. In this ever-evolving landscape, those who master the art of market making are poised to unlock new frontiers and shape the future of global markets. #MarketMaking #Finance #GlobalMarkets #Liquidity #TechnologyInFinance #RiskManagement #FinancialInnovation #MarketTrends #Investing #Automation #Fintech #financialmarkets