Research and Policy Center

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NEW! Many insights and research papers from CFA Institute Research and Policy Center this week, including four new #EnterprisingInvestor blogs and: 💲 Member Survey on the #USDollar 🎯 BRSR at Corporate #India 📝 Key regulatory priorities for EU capital markets 🌲 Global Carbon Markets Tools Read all our new content at: https://lnkd.in/epXaT-GP

Alternative asset classes move through a distinct investment cycle, and private credit has entered the all-inclusive “flood phase,” reports Mark Higgins, CFA, CFP®. He explains the origin and evolution of the private credit boom and cautions that the asset class is a treacherous swamp full of opportunists. He asks #EnterprisingInvesor readers: “Is your consultant capable of defying the formidable odds of success?” The Alternative Asset Class Investment Cycle: 📌 Formation: A legitimate void appears in capital markets. For example, in the aftermath of World War II, US companies had a wealth of opportunities to commercialize war-related technologies, but banks remained skittish because of their experiences during the Great Depression.  📌 Early Phase: Innovative capital providers generate exceptional returns as the number of attractive opportunities exceeds the supply of capital. The experience of VC and buyout fund investors, such as the Yale University Endowment, in the 1980s is a perfect example.  📌 Flood Phase: In pursuit of new revenue streams, opportunists launch a barrage of new funds, and then a herd of followers invests in them. This invariably compresses future returns because the supply of capital far exceeds the number of attractive investment opportunities. https://lnkd.in/eVEWsGuk

JUST RELEASED! A new survey report published today by the CFA Institute Research and Policy Center highlights significant concerns among investment professionals about the sustainability of U.S. government finances and its reliance on unfunded budget deficits. Authors Olivier Fines, CFA and Urav Soni reveal the insights of more than 4,000 investment professionals worldwide concerning the U.S.'s high debt-to-GDP ratio, budget deficits, and the continuing prospects for the U.S. dollar as the leading global reserve currency. Read the report: https://lnkd.in/etDzymTU

The Mercer CFA Institute Global Pension Index 2024 benchmarks retirement income systems worldwide using more than 50 indicators. This annual report rates global pension systems and recommends reforms to improve outcomes and participant trust in an era of aging populations. Read this year's report: https://lnkd.in/egQY5jwg

NEW RESEARCH! Authored by Yushuo Yang, Ph.D., CFA, FRM and Rhodri Preece, CFA, this report highlights that global carbon markets (GCMs), crucial for achieving net-zero emissions, are market-driven tools to efficiently price carbon and manage emissions. Read the full report: https://lnkd.in/eV4mPUSh

As #AI and #bigdata transform the financial services sector, from credit risk assessment to fraud detection, investment professionals face new opportunities and challenges. But with this power comes regulatory scrutiny, Md Nasim Akhtar, FDP, cautions in #EnterprisingInvestor. In a rapidly evolving landscape, staying compliant with laws like the ECOA, FCRA, and UDAAP is critical. AI presents incredible growth opportunities, but success will depend on your ability to navigate these regulatory waters. Ensure you’re fully informed to leverage AI while minimizing risk. Key areas of focus: 🔎 Managing discrimination risks under ECOA 🔎 Ensuring FCRA compliance with alternative data 🔎 Mitigating privacy and data security risks 🔎 Monitoring third-party vendors in the AI space https://lnkd.in/ery9VVWd CFA Institute #InvestmentBanking #RiskManagement #RegTech #FinancialInnovation

To commemorate #GlobalEthicsDay, Jon Stokes presented an AI ethics case study in #MarketIntegrityInsights last week. This post will reveal how well you applied the Codes and Standards to analyze the case. https://lnkd.in/efZ2u9hg

📖 BOOK REVIEW: Should I add bitcoin to my portfolio? If not, why not? This book will help advisors field these tough client questions. Resistance Money is an authoritative examination of a controversial asset with a current aggregate value of $1.3 trillion, writes #EnterprisingInvestor book review editor Marty Fridson. 👉 The authors forthrightly state the case against #bitcoin in the course of arguing that on balance, one should prefer to live in a world with bitcoin rather than one without it. Whether you are for or against bitcoin, this book’s evenhanded approach is a welcome contrast to the extreme comments regularly heard from both bitcoin’s zealous proponents and its frequently ill-informed opponents.  👉 They come much closer to a CFA Institute-style ideal of rational, evidence-based analysis than most comments on bitcoin’s merits, or lack thereof. https://lnkd.in/eQW2qrUr

#NEWRESEARCH: The Mercer CFA Institute Global Pension Index, new insights into modeling climate transition risk, SBBI data, a new edition of the Financial Analysts Journal, and much more. View all the latest information on our website: https://lnkd.in/epXaT-GP