Monthly Archives: July 2015

A World of Debt

The BIS provides much information about the indebtedness level of countries. The below interactive map shows what was the total outstanding debt in billion  of US Dollars  for each of the countries that are surveyed by the BIS as of December 2014 .

Risk Levels and Investor Preferences

Fund flows are an important source of information to monitor since they reflect the general investor preference for a specific asset class given current and expected economic conditions, market risk and other factors. They may also highlight  non-sustainable market positioning. In the following we illustrate the relationship between risk and investor preference for  assets  by using the  ICI data  which tracks about 98% of  inflows and outflows in US mutual funds. The below chart dynamically plot what were the inflow/outflows in US mutual funds as a function of the VIX level.  When selecting  period of high volatility (such as 2008)  with the slider the negative relationship between risk and appetite for equities becomes obvious.