Imagine that your company is kicking off two projects. The first one entails the assumption of big risks, but it will pay off in a major way for the company if it succeeds. You need to pick one of your team members to run it, someone who manages risk well while under stress. The second project is considerably lower profile, and its manager will need to be someone who can operate autonomously in a situation where no level of risk is tolerable. Your top two lieutenants are a man and a woman. Whom do you pick to run which project? If you use old gender stereotypes about risk aversion and risk tolerance to inform your decision, you’ll likely make a big mistake. Leaders who seek guidance in the old Men Are from Mars, Women Are from Venus paradigm will quickly lose their way, because when it comes to risk and gender, the relevant celestial orbs are Uranus and Neptune: two planets that are nearly the same size. Indeed, as Julie Nelson, an economist at the University of Massachusetts at … [Read more...] about Why Gendered Risk Management Is a Risky Business
E g funds management
Swelling corporate debt piles are now global fund managers’ major concern
Around one quarter, 24%, of global fund managers expect corporate bonds to be the worst performing asset class in 2019. The latest survey by Bank of America shows more fund managers want to see companies use capital to strengthen their balance sheet. While global growth expectations have fallen to the lowest level since the financial crisis, only 11% of fund managers forecast a global recession in 2019 Rising levels of corporate debt are well and truly on the radar of global fund managers, and that doesn’t bode well for global stocks. US corporate debt levels have now risen to a record-high 46% of GDP, according to the latest Bank of America survey of global fund managers. The past decade has seen a sharp rise in corporate debt issuance, as investors hunt for yield in a low interest rate environment. There are now concerns that more debt has been issued has been issued on increasingly looser terms, known as “covenant-lite” arrangements. And the Bank of America … [Read more...] about Swelling corporate debt piles are now global fund managers’ major concern
Excessive levels of corporate debt are now the primary concern among global fund managers
Around one quarter (24%) of global fund managers expect corporate bonds to be the worst performing asset class in 2019. The latest survey by Bank of America Merril Lynch shows more fund managers want to see companies use capital to strengthen their balance sheet. While global growth expectations have fallen to the lowest level since the financial crisis, only 11% of fund managers forecast a global recession in 2019. Rising levels of corporate debt are well and truly on the radar of global fund managers, and that doesn’t bode well for global stocks. US corporate debt levels have now risen to a record-high 46% of GDP, according to the latest Bank of America Merril Lynch (BAML) survey of global fund managers. The past decade has seen a sharp rise in corporate debt issuance, as investors hunt for yield in a low interest rate environment. There are now concerns that more debt has been issued has been issued on increasingly looser terms, known as “covenant-lite” … [Read more...] about Excessive levels of corporate debt are now the primary concern among global fund managers
These Funds Aim to Power Their Returns With Clean Energy
Sections SEARCH Skip to content Skip to site index Business Day Subscribe Log In Subscribe Log In Today’s Paper Advertisement Supported by ByTim Gray Oct. 12, 2018 If you worry about climate change and have some money to spare, it’s natural to wonder whether investing in green energy might plump your returns while helping to stem rising temperatures. A growing number of stock mutual funds and exchange-traded funds specialize in the so-called green- or clean-energy industry. They invest not only in the expected companies, like generators of solar and wind power and their suppliers, but also in less obvious ones, like makers of LED light bulbs, electric cars and automobile batteries. Buying into one of these funds means betting on a burgeoning, if volatile, sector and pinning the green in your wallet to your hopes for a more verdant future. Demand for renewable energy is surging, according to the International Energy … [Read more...] about These Funds Aim to Power Their Returns With Clean Energy
G.E. Steps Into Europe’s Offshore Wind Market
Sections SEARCH Skip to content Skip to site index Climate Subscribe Log In Subscribe Log In Today’s Paper Advertisement Supported by ByStanley Reed Sept. 21, 2018 ST.-NAZAIRE, France — At a brightly lit factory near the mouth of France’s Loire River, technicians in hardened black baseball caps gingerly maneuver wind machine tower turrets called nacelles across the floor and then join them to big round generators. Then they roll the assemblies, which weigh hundreds of tons, onto the dock for shipment to a wind farm that General Electric is building off the coast of Germany. The Loire region, where quaint fishing villages and charming wineries coexist with heavy industry, is central to the ambitions that G.E., the American corporate giant, has to become a force in the offshore wind-power industry, which is dominated by European companies. This fall, G.E. plans to expand and reorganize the plant to build test … [Read more...] about G.E. Steps Into Europe’s Offshore Wind Market