Archives for Markets - Page 7
Contingent Convertible Bonds (“CoCos”) have been around since 2009. They were primarily designed by banks and government regulators to meet the regulatory capital eligibility requirements of Basel III (a voluntary regulatory framework principally concerning bank capital adequacy). Most CoCos are bought by retail investors and small private banks. It is widely…
Investor behaviour often departs from a logical, reasoned view. This is because people are influenced by their emotions, by errors and by their own personality. Understanding and correcting these behavioural biases is critical to improving investment performance. Behavioural biases are commonly considered to be of two types: cognitive and emotional.…
Every day now we have investment banks and others telling us that the Australian housing party is over. Estimates for price falls over the next year or so vary from 7.5% to 25%. Even the Reserve Bank of Australia is in on the act. But it is trying to but…
It is human nature to see order where there is none and to see patterns that do not exist. The reason, it is argued, is that early man would use pattern recognition to see a lion behind trees and thus attempt escape. It was much more important to be wrong…
A million dollars will not buy much in Australia’s overpriced housing market. In Sydney, the largest Australian city of around 5 million people, house prices were up 20% over the past year. Here’s a look at what one million or so will buy in Sydney. Houses Newtown is an inner…
SWAY: The Irresistible Pull of Irrational Behaviour, written by Ori and Rom Brafman, was first published in 2008. It was a New York Times bestseller. Full details below. The book has nine chapters, all with the same basic format. Each chapter covers an aspect of irrational decision making. Several examples…