- The uninterrupted rise of passive investments
Today, passive investments accounts for more than 30% (estimated) of global assets under management. In the United States, the Federal Reserve of Boston has calculated a market share of passive investments of above 40% for the American market alone, versus 14% only in 2005; and of around 48% just for equity markets.1 This uninterrupted rise represents a radical change in the way the balance between supply and demand is
- The multiplier effect of leverage and liquidity risk
An important consequence of both low interest rate environments and massive monetary support over the past decade can be witnessed today in the level of leverage sought by investors. Leverage is indirectly acquired via an increasingly frequent use of options and directly with the use of margin trading accounts. Applied to the US GDP, the recent surge in this leverage maximization in the United States has reached record levels in absolute terms; also with regards the acceleration of this phenomenon.
Written in March 2021
This material has been provided for information purposes only to investment service providers or other Professional Clients, Qualified or Institutional Investors and, when required by local regulation, only at their written request. This material must not be used with Retail Investors.