Are bonds the new equities, and equities the new bonds?

Prof. Jayanth R. Varma's Financial Markets Blog

A year and a half ago, I wrote a blog post about loss aversion and negative interest rates. That post argued that if prospect theory is true, then the most loss averse investors who traditionally invest in bonds would now become risk seeking when confronted with certain loss of principal induced by negative interest rates. I also raised the possibility that the most loss averse investors would switch to equities and the less loss averse investors would stay in bonds. As we look around at investor behaviour under negative rates, we can see evidence of loss aversion at work though perhaps not quite in the way that I hypothesized earlier.

The most loss averse investors have become risk seeking by taking on duration risk rather than equity risk. If you buy a bond maturing beyond your investment horizon, then there is a possibility of a capital appreciation if interest rates…

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FIX India Conference 2016 – 1st Sept, Mumbai, Complimentary Pass for AIWMI/IAAIF and CCRA Global Community Members

AIWMI/IAAIF are pleased to partner with FIX Trading Community for their upcoming India FIX conference scheduled on 1st Sept 2016 at ITC Grand Central, Mumbai.
AIWMI/IAAIF  and CCRA Global Community Members can avail a complimentary pass by registering on the event info provided below.
 
If you are unable to see this email, please go to http://www.fix-events.com/India/email_AI.html

India
Thursday, 01 Sept 2016 – ITC Grand Central
Registration Open

Entering its 8th year, the FIX Trading Community™ India FIX Conference is the leading electronic trading event in India where industry peers come together to discuss the most pressing issues in the trading world. The conference also act as a catalyst for industry action and dialogue to help solving industry challenges as well as highlights the latest trends such as Blockchain, Microsecond trading etc. This electronic trading conference is designed for both traders and technologists trading equities and derivatives in India and offshore…

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FIX India Conference 2016 – 1st Sept, Mumbai, Complimentary Pass for AIWMI/IAAIF and CCRA Global Community Members

AIWMI/IAAIF are pleased to partner with FIX Trading Community for their upcoming India FIX conference scheduled on 1st Sept 2016 at ITC Grand Central, Mumbai. AIWMI/IAAIF  and CCRA Global Community…

Source: FIX India Conference 2016 – 1st Sept, Mumbai, Complimentary Pass for AIWMI/IAAIF and CCRA Global Community Members