Inflation maybe, but not for everyone: a tale of five different “deleveragings”

Posted on 17. Sep, 2012 by Jean Jacques Ohana in Weekly Focus

Nothing is more different from a QE…than another QE…

In a captivating piece, Ray Dalio (Bridgewater Associates) explains that the differences between how deleveragings are resolved depend on the amounts and paces of 1) debt reduction, 2) austerity, 3) transferring wealth from the haves to the have-nots
and 4) debt monetization.

When looking at the deleveragings of the [...]

How to invest in a low Risk Aversion mode

Posted on 10. Sep, 2012 by Jean Jacques Ohana in Weekly Focus

Riskelia’s heat map of financial risks (figure 1) dynamically pictures a normalized fear index reflecting more than 100 quoted risk premium in financial markets: implied volatility, credit spreads, CDS and monetary liquidity spreads like the LIBOR/OIS spread. Every type of financial vulnerability has eased since June 2012, notably the euro funding risk which had been [...]

Gold is now the only freely traded currency

Posted on 03. Sep, 2012 by Jean Jacques Ohana in Weekly Focus

Since the intervention of the Swiss National Bank in September 2011 which has eventually stuck the EUR/CHF at 1.2010, currencies manipulations engineered by Central Banks have generalized:

The Norges Bank has cut interest rates twice and threatens other cuts in interest rates to prevent the NOK appreciation. In parallel, the Norwegian Sovereign Wealth Fund is selling [...]