Klement on Investing

Joachim Klement
Thoughts on financial markets by a grumpy, middle-aged German. What more do you want?
Created 31 May 2019
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  • The overlooked opportunity in CLO
    09 Dec 2021about 7 hours ago • 2 min read
    Whenever I start talking about CLO, Collateralised Loan Obligations, I get one of two reactions. Either people’s eyes glaze over because they don’t understand these structured finance investments, or ...
  • Discretion
    08 Dec 20211 day ago • 2 min read
    Most market indices try to be as neutral as possible and follow strict rules wherever they can. But for every rule you define there are sometimes grey areas where one can interpret things one way or a...
  • From low interest rates to market dominance
    07 Dec 2021 • 1 min read
    Low interest rates have all kinds of unintended consequences as we have found out over the last decade. They change investor behaviour and banks’ lending activities amongst other things. But there may...
  • The continued value of satisfied employees
    06 Dec 2021 • 2 min read
    One of the most irritating things for investors is that so many strategies to make money may stop working at some point. In particular, anomalies that are described in the literature often stop workin...
  • The benefits of technology: Gay people are everywhere now
    03 Dec 2021 • 1 min read
    One problem I have with technology is that every lunatic in the world now has the ability to find like-minded dimwits and spread his or her conspiracy theories around the globe. Thanks to Facebook, QA...
  • The value of transparency for smaller firms
    02 Dec 2021 • 2 min read
    A couple of days ago, I discussed how increased transparency and ESG reporting are able to lower the cost of capital for a business. But these benefits of increased transparency apply not just to ESG ...
  • Voluntary giving is not a great solution
    01 Dec 2021 • 2 min read
    As we approach Christmas, it is high season for charities who knock on doors and ambush pedestrians to ask for a donation. And while charitable giving is laudable (I do it as well, but not spontaneous...
  • The duo-oligopoly of ETFs
    30 Nov 2021 • 1 min read
    Competition watchdogs use the Herfindahl-Hirschman Index (HHI) as one measure to assess how competitive or concentrated an industry is. Values above 2,500 describe a highly concentrated industry with ...
  • How to lower your cost of capital using ESG
    29 Nov 2021 • 2 min read
    As ESG investing becomes more popular, companies with poor ESG credentials face rising costs of capital, either because their cost of debt increases (banks already incorporate ESG factors in their len...
  • Data vs. anecdotes
    26 Nov 2021 • 1 min read
    They say the plural of anecdotes is not data and it is always worthwhile to remind us of this. And in some instances, it can even be fun to disprove anecdotes with data. It’s been almost six months si...
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