Lessons (not) learned: our analysis shows Ivies are at pre-GFC levels of risk
Investment Risk
Bridgewater co-CIO on Risk Parity, Correlations and Contagion
“This year, it’s been like watching popcorn. One after another things popped,” Bridgewater co-CIO Bob Prince tells Risk.net’s Rob Mannix in this article, which cites MPI research. “The difference though is we’ve not had a contagion effect. Each event is an isolated event. Then it goes away…. That’s because, though the central banks are withdrawing liquidity, the financial system is in a very different situation from what’s typical at this stage of the cycle. Typically at this stage of the cycle the financial system is overleveraged because it’s been financing the economic expansion.” Read the full article here. (subscription required)
