Due Diligence: Ask This, Not That


  • Due diligence is an important practice in our industry – and one that should be ever-evolving.
  • There are some questions we receive on due diligence questionnaires that are well intentioned, but we think can be improved.
  • Finally, in doing due diligence, we think that after the question “how”, there should almost always be a follow-up question of “why”?

What happened to rising rates?


  • The FED is pretty bad at economic forecasting.
  • The expected size of the rate hike to occur in 2015 has been significantly reduced through 2015.
  • Futures on federal funds rates now imply that the market expects rates will rise sooner, but then will rise in a more gradual manner in comparison to expectations in December 2014.
  • The expected rate of increase of the federal funds rate is much more subdued than paths of any historical rate increases.


risk attribution

Why Sector Investing

I just came across a great post on sector investing by Dave Mazza, Head of Research for SSGA's ETF and mutual fund businesses.

There is a lot of great information he walks through, but I thought there were three tidbits particularly interesting to us as risk managers.