The Crisis Facing Fixed Income Investors

Hedge Funds
by trusted insight posted 10years ago 6312 views
From OpalesqueTV Simon Lack spent 23 years at JP Morgan, running North American Fixed Income Derivatives and Forward FX trading for much of that time before founding SL Advisors, a Registered Investment Advisor. His latest book, "Bonds Are Not Forever: The Crisis Facing Fixed Income Investors," examines the variety of factors that make U.S. Treasuries a bad long-term investment. According to Lack, a combination of long-term secular trends of the last 30 years has created too much debt to be financed. The public policy response has favored borrowers by keeping interest rates down and thus making bonds “really a return-free asset class”. Inflation is the real threat: Lack believes it is a bad bet that inflation will not go up and shares thought-provoking insights regarding systemic flaws of inflation statistics. Learn more about: • The convergence of three big secular trends of the last 30 years that have created too much debt to be financed. • Why inflation statistics are misleading. • Inefficiencies for retail investors in the municipal bond market: Transaction costs of between 1 and 2%. • The come back of cash: With low interest rates, combination of stocks and cash is beneficial from a risk standpoint. Following 23 years with JPMorgan, Simon Lack founded SL Advisors, LLC, a Registered Investment Advisor, in 2009. Much of Simon Lack's career with JPMorgan was spent in North American Fixed Income Derivatives and Forward FX trading, a business that he ran successfully through several bank mergers ultimately overseeing 50 professionals and $300 million in annual revenues. Simon Lack sat on JPMorgan's investment committee allocating over $1 billion to hedge fund managers and founded the JPMorgan Incubator Funds, two private equity vehicles that take economic stakes in emerging hedge fund managers. Simon Lack's deep experience in financial markets, managing complex trading businesses and overseeing hedge funds provide him with a unique perspective from which to manage investments and advise clients. Simon chairs the Investment Committee of Wardlaw-Hartridge School in Edison, NJ and also chairs the Memorial Endowment Trust Investment Committee of St. Paul's Episcopal Church in Westfield, NJ. Simon is a CFA charterholder, and the author of The Hedge Fund Mirage.