In the decade since the global financial crisis, the value of nonfinancial companies' outstanding bonds has nearly tripled, owing not least to growth in corporate debt in emerging markets. But while a correction seems likely as defaults rise, the broad shift toward bond financing is actually a welcome development.
The Trump administration's introduction of sweeping import tariffs on steel and aluminum raises the real possibility of a global trade war. The effects would be felt everywhere, but especially in the world's poorest countries, and everything from the current global recovery to the Sustainable Development Goals could now be in jeopardy.
Contrary to the warnings of some political analysts, even after the recent debacle in Canada, the G7 can and will play a role – albeit a less important one – on the global stage. But that does not mean that the summit's failure was cost-free.
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It may have been a strategic mistake for the Trump administration to walk away from the Trans-Pacific Partnership (TPP), because it damages U.S. influence in the region and allows China to fill the void. The door is now open for China to become the 800-pound gorilla in Asia (which may be why President Trump has begun talking about re-entering the agreement).
As value managers, we search for companies that exhibit superior capital stewardship and whose management teams are disciplined about creating shareholder value over time.
Italy's new Five Star Movement/League government has been assuring financial markets that its intentions with respect to the euro and EU fiscal rules are pure. But soothing words will not change the fact that Italy is beset by political and economic crises that could plunge it – and Europe – into the abyss.
Following the United Kingdom’s Brexit vote and the rise of populists in Central Europe, does the emergence of a Euroskeptic government in Italy represent a test too far for the European Union? Mark Leonard, Director of the European Council on Foreign Relations, says that all roads for Europe now lead through Rome.
The World Trade Organization (WTO) administers a multilateral system that promotes world trade. The Trump administration has complained that the WTO is unfair to the United States, and seems to favor America acting outside WTO rules to induce other countries to enter into better deals with the U.S. Recent administration policies, such as unilateral tariffs imposed on steel and aluminum, and a…
Aristotle famously contrasted two types of knowledge: “techne” (technical know-how) and “phronesis” (practical wisdom). Scientists and engineers have offered the techne to move rapidly from fossil fuels to zero-carbon energy; now we need the phronesis to redirect our politics and economies accordingly.
The Trump administration is right to push back against China's violations of world trade rules, particularly with regard to advanced technologies. But US high-tech industries' ability to weather the challenge posed by China will depend less on curbing China’s progress, and more on supporting innovation at home.
As the US Department of Labor prepares to let its fiduciary duty rule die, the SEC recently proposed a new standard of conduct rule for broker-dealers who provide recommendations with respect to securities transactions, including investment strategies. Rejecting the call for a uniform fiduciary standard, the proposed Regulation Best Interest would instead require broker-dealers to meet the…
(Reuters) - General Electric Co's expulsion from the elite Dow Jones Industrial Average may be a bitter pill to swallow for shareholders, but it could be little more than a publicity blow for investors in the 126-year-old struggling U.S. conglomerate.
Donald Trump’s depiction of his meeting with North Korean leader Kim Jong-un as a great success that solved the nuclear problem could make it tougher to maintain international support for the economic sanctions that are still needed to pressure Kim. Weakening the prospect of achieving one's goals is not the mark of a strong negotiator.
Many investors have turned to emerging market bonds seeking higher returns in the current low interest rate environment. This raises a natural question about the potential for financial instability if investors choose to sell off those bonds quickly. Studying how changes in foreign holdings of Mexican government bonds known as bonos affected their liquidity premiums provides an assessment of…