Best Of the Web

Quantitative Styles and Multi-Sector Bonds A high-level summary of trading model returns in fixed incomes. The author looks at various trading models including carry, momentum and valuation. They find that carry, short-term momentum and long-term reversals (mean-reversion) work well across fixed income markets.

Tech and Antitrust Very good analysis arguing that today’s platform tech companies like Google and Facebook aren’t like conventional monopolies. One reason is that competition for (say) Google is just one click away (Bing or DuckDuckGo). The article makes comparisons between today’s tech companies and 1990s Microsoft.

Europe Must Fix Its Fiscal Rules Former chief economist of IMF, Oliver Blanchard, argues in an environment of persistently low interest rates and below-potential output, European policymakers need to rethink their attitude to public debt. This means creating a common budget, or at least overhauling the fiscal rules that have tied member-state governments’ hands for no good reason.

For party voting preference, which is more important, age or education? Looks like we have an answer Higher education leads to voting Democrat, ageing leads to voting Republican. Of the two effects, age dominates.

Unconventional Thinking about Unconventional Monetary Policies Barry Eichengreen argues that political interference is even likelier if central banks shun QE in the next recession.

The Traditional Active Manager That’s Raking in Assets Article profiles a US active manager that has attracted $45bn in new assets over the last two years. Its secret? Specialising in liability-driven investing and derivatives-heavy de-risking strategies favoured by corporate pension plans.

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