Are our models too complex?

Gillian Tett is a well-respected writer for the Financial Times and frequently picks up the topic of complexity in financial markets. In a recent article (see here) she makes a case that the era of number crunching is over, and that the world of investments is back again firmly in the domain of human relationships … Continue reading Are our models too complex?

Bond ladders

Never heard of bond ladders? Well neither had I until a few months back. I was running some tests on a sample bond portfolio and discovered a seeming paradox: A portfolio that is long bonds may actually benefit from a sell off! The explanation is that you benefit when you reinvest the coupons that your … Continue reading Bond ladders