Tuesday, February 9, 2010

 

Lies of Capital Lines

By Kirill Ilinski, Fusion Asset Management and Alexis Pokrovski, Laboratory of Quantum Networks, Institute for Physics, St-Petersburg State University

In their paper they examine in detail the qualitative effects caused by the investors' sensitivity to mark-to-market and price of liquidity. They find that by chasing returns and prompting investment managers to deliver unsustainable performance, the investment community damages its own chances through a greedy search for yield.

Download the full article here.

From the February 2010 issue of Barclay's Insider Report. Accredited investors can subscribe to the full newsletter for free.

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