Insights you might have missed last week

Explore quality and timely perspectives from global institutions

Here are some of the highest quality pieces of insight from top asset managers and institutions from around the world that you might have missed this week.

Negative Correlations, Positive Allocations (PIMCO)

If the prevailing theme in asset allocation since early 2023 has been that bonds are back, a nascent theme today is correlation.

The “Sharpe” Point of Securities Lending (State Street)

This report looks at the historical performance of more than 5000 anonymized and aggregated securities lending programs over 15 years.

ETF Industry Trends: Let the Rate Cuts Begin (Vanguard)

For compliance reasons, this paper is only accessible in the United States

Small-capitalization ETF flows are on the rise—a pattern that has historically coincided with interest rate cuts.

Man vs. Machine: The Influence of AI Forecasts on Investor Beliefs

The rapid advancement of AI is transforming the finance and accounting industry, prompting the re-evaluation of roles traditionally held by humans.

Regret in Global Equity Markets

The theory of regret is an alternative theory of decision making under uncertainty, which can explain many axiomatic violations associated with the expected utility framework.

The Siren Song of Sustainability (Aswath Damodaran)

Business schools around the world have discovered that sustainability classes are solid money makers when constructed as executive classes.

Delta Airlines Pension Fund Turnaround | Jon Glidden (Capital Allocators)

Jon Glidden is the CIO of Delta Air Lines, where he oversees the company’s $16 billion pension fund. He discusses how the company's pension fund has been revitalized.

Which Way Does the Wind Blow: SPX Futures vs. VIX Futures? (W.V. University)

Using futures market proxies, the authors of this paper examine the relation between intraday stock market returns and expectations of implied volatility.

U.S. Debt, the Weak AUD and the Role of Super Funds (Firstlinks)

For compliance reasons, this paper is only accessible in certain geographies

Whilst the U.S. economy approximates 30% of world GDP, its government now accounts for 32% of world government debt.

Global ESG, Compliance, and Risk Report 2024 (BCG)

To increase resilience in today’s evolving risk environment, companies must address a multitude of new requirements, both external and internal in nature.