Refresh the chart in your browser | Edit chart in Datastream This week, financial markets stabilised somewhat after the volatility of the previous week, in which the S&P 500 saw its biggest one-week fall since February. Even within the relative benign market experience of the last three years, last week’s sell-off did not particularly stand out. It has, however, validated a pattern consistent with the inherent instability between late-cycle macroeconomic fundamentals and richly priced risky assets. This has further vindicated Fathom’s preference for running lower levels of risk across its asset allocation recommendations since the beginning of the year. Refresh the chart

The so-called ‘Trump trade’ may have shown a flicker of life following the passing of a 2018 budget blueprint last Thursday, but we do not expect US tax reform to be enacted until Q1 or Q2 next year. Refresh the chart in your browser | Edit chart in Datastream Want more charts and analysis? Access a pre-built library of charts built by FathomConsulting via Datastream Chartbook in Thomson Reuters Eikon. Last Thursday, Republican senators passed a 2018 budget blueprint by a narrow 51 – 49 margin, with Democrats unanimously opposed. Thursday’s vote is one significant hurdle cleared for the administration’s recent tax proposal; the US dollar, Treasury

Political uncertainty may have cast a cloud over Donald Trump’s ability to loosen fiscal policy, but we still think that the FOMC will raise the fed funds rate by another 150 basis points between now and the end of next year. We estimate that this would increase the annual borrowing costs of businesses and households by nearly $150 billion. To the extent that this tips unproductive firms out of business, it would ultimately be beneficial for the economy. But, in aggregate, US households and corporates have improved their balance sheets and many have locked in low borrowing costs for the

Valuation is mission critical to investment funds and policy makers indicate that failing in this area contributed significantly to the recent financial crisis. To protect the customer, efforts to harmonize and institutionalize best practice Valuation standards must be put in the spotlight. With hedge fund managers now subject to similar scrutiny as the traditional investment funds and new transparency requirements embedded in the post-crisis regulatory response, we must keep an eye on fund valuation dynamics and the ever-changing landscape. Might there be commonalities between the valuation regulations across different jurisdictions? With IOSCO attempts to successfully implement a globally recognized system, is

This poignant whitepaper by Jayme Fagas, Global Head of Valuations & Transparency addresses the key Fair Value Pricing and Transparency requirements, as stipulated by the International Financial Reporting Standards (IFRS) and the Alternative Investment Fund Managers Directive (AIFMD). It offers market practitioners practical advice about how they can better adhere to these regulatory requirements in order to remain compliant. Furthermore this paper also informs the reader about a set of due diligence criteria they should consider applying prior to the selection of any third party pricing and reference data vendor. Download the report