Flight to Quality as Markets finally Appreciate Risk
London, UK - 27 July 2007, 09:55 GMT
Dear ATCA Colleagues
[Please note that the views presented by individual contributors are not
necessarily representative of the views of ATCA, which is neutral. ATCA conducts
collective Socratic dialogue on global opportunities and threats.]
Concerns about the impact of higher global interest rates on company profits,
takeovers and loan defaults have finally hit world markets as investors go
into risk reduction mode. A significant drop-off in share prices is being
seen around the world.
When a lot of people are moving out of stocks, out of riskier fixed income
into short-term Treasuries collectively, the net result is the settling of
froth in the financial markets -- now long overdue!
We are grateful to:
. Robert McNally, Chairman, London Chamber of Commerce Property and Construction
Group, for "Erosion of Commercial Real Estate
as a Solid Asset Class;"
. Alexander Hoare, CEO, C Hoare and Co, Private Bankers, based in the City
of London, for "Destructive Creativity, Leverage
and The Derivatives Market;" and
. Dr Harald Malmgren, CEO, Malmgren Global, based in Washington, DC, for "The
Fear of Central Bankers -- Flight from Illiquidity, Derivatives and Heightened
Risk of Contagion;"
in response to, "Are the Currency Markets Warning
that there is Trouble Ahead? The Precipitous Decline of the US Dollar and
its Impact on the World."
We look forward to your further thoughts, observations and views. Thank
For and on behalf of DK Matai, Chairman, Asymmetric Threats Contingency
ATCA: The Asymmetric Threats Contingency
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