FINSUM

FINSUM

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(New York)

Two of the biggest problems facing many investors are how to handle potential inflation and taxes but…see the full story on Magnifi’s site

Wednesday, 28 July 2021 07:09

Are Millennials Buying the Dip?

(New York)

The stock markets have had some very small slumps but rebounded quickly in the last 12-months. The refusal to…see the full story on Magnifi’s site

Wednesday, 28 July 2021 07:04

ESG is the talk of the town

(New York)

Environmental, social, and governance is the well-known splash in the investment world but…see the full story on Magnifi’s site

(New York)

When Schwab announced its acquisition of TD Ameritrade in November 2019, there was a big and sustained surge of consternation among RIAs. TDA had long been known as specializing in RIAs, especially on the smaller end of the spectrum. Schwab had exactly the opposite reputation. That has left a general void for the smaller advisor looking to go independent for the first time. However, Goldman is apparently ramping up its new custody unit and clearing platform for RIAs. The move is still in its early stages, but the firm is hiring several executives to lead the charge and seems to be aiming to compete with Schwab, Fidelity, BNY Mellon etc.


FINSUM: Advisors may recall that Goldman acquired United Capital in 2019. United was an RIA consolidator, so this seems like a natural step for the bank. In our view, it would be great for the industry to have more competition on the custodial front.

(New York)

By any reasonable measure, high yield bond markets look very scary right now. The way that yields have plummeted, the way that covenants have weakened, and the general ease of accessing credit are all reminiscent of 2005. Spreads over Treasuries have fallen to just 300 bp. A year ago they were at 600 bp. Companies have successfully weakened investor protections in new issues without penalty, and crucially, default rates will likely fall below 1% this year. The picture was the same in 2005.


FINSUM: By the Crisis, default rates hit 14% and high yield investors got killed. However, a big correction in high yield would take a catalyst. Is it a sooner-than-expected Fed pullback?

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