Taking Stock of Preferreds After QE

Taking Stock of Preferreds After QE

With the Federal Reserve (Fed) ending its third and final round of quantitative easing (QE) in October, investors are trying to assess the impact on income-producing asset classes. While the complete effect of Fed policy normalization remains to be seen, the end of its asset purchases effectively eliminates the downward pressure that balance-sheet growth has put on rates.

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Three Reasons Why MLPs Can Withstand Oil at $80 — or Less

Three Reasons Why MLPs Can Withstand Oil at $80 — or Less

October was a difficult month for master limited partnerships (MLPs) due to a steep drop in oil prices. However, despite the short-term volatility, the long-term outlook for MLPs should remain solid for three main reasons:

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Passing the Baton: Can Central Banks Transfer Credit Creation to Commercial Banks?

Passing the Baton: Can Central Banks Transfer Credit Creation to Commercial Banks?

After several iterations of quantitative easing (QE) programs in developed markets, passing the credit creation baton from central banks to commercial banks is the next step required for sustainable recovery. The key question is simple: Are central banks ready for the handover to commercial banks?  But the answer is less so. A closer look at the design of QE programs in the US, eurozone and Japan offers insight into their varying degrees of readiness — or unreadiness — to pass the baton.

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Risk Parity: Comparing the Objections With Reality – Part 2

Risk Parity: Comparing the Objections With Reality – Part 2

As the use of risk parity has grown, so have criticisms against the approach. In this blog series, I look at objections I’ve heard about risk parity, and explain why we believe they do not apply to our risk-parity approach — the Invesco Balanced-Risk Allocation strategy.

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The Weather Outside is Frightful, But the Fed’s First Rate Hike Shouldn’t Be

The Weather Outside is Frightful, But the Fed’s First Rate Hike Shouldn’t Be

The timing of the end of the Federal Reserve’s (Fed) zero interest-rate policy is garnering a lot of attention —  needlessly, in my opinion. Here are three reasons why I believe investors can stop worrying about the Fed’s first rate hike and instead enjoy the holiday season.

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Shanghai-Hong Kong Stock Connect – A Milestone That Enhances Capital Market Connectivity

Shanghai-Hong Kong Stock Connect – A Milestone That Enhances Capital Market Connectivity

Access to Chinese capital markets will receive a boost on Monday, Nov. 17, with the opening of the new Shanghai – Hong Kong Stock Connect program. The pilot program will allow investors to make cross-border stock purchases between these two markets, to an extent.

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