Best Blogs of the Week #243
Negative interest rates? It’s been in the news quite frequently, but the Blackrock post here explains the topic better than I’ve seen elsewhere. Along with that post, three others worth highlighting this week as we approach summer’s end.
BlackRock – How do negative interest rates work? – who would buy a negative yielding security? Obviously not investors looking for income. However, there are institutions like some insurance companies and banks who hold government bonds for specific reasons, such as to meet regulatory requirements. These investors need to hold bonds for safety, no matter what the yield is.
BlackRock – Warming up to emerging markets – Within EM equities we prefer countries showing economic improvement or having clear reform catalysts, including India and ASEAN countries.
Loomis Sayles – The Connected Consumer: 3 Key Themes – I believe the future of the automotive industry will be defined by the ‘connected car’ – vehicles as an extension of our lives.
Invesco – What will real estate’s new sector status mean for investors? – Potential benefits include increased visibility, a larger investor base and a reduction in long-term volatility. We will closely monitor the REIT market for relative value opportunities that may arise from index and ETF changes, essentially nonfundamental drivers of performance, over the short term.