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Credit Suisse — Triggering Another Financial Crisis?

Credit Suisse — Triggering Another Financial Crisis?

Last week, Credit Suisse’s credit default swaps yield, or CDS spiked more than 5% (500 bps) in a day, rising more than Barclays’ and Deutsche Bank’s CDS.

This post was originally posted here. The writer, Willie Keng is a veteran community member and blogger on InvestingNote, with a username known as @Willie and has close to 200 followers.

Now, credit default swap is like an insurance policy against a default event on an asset – for example, a bond.

Investors pay the yield on the CDS, also called an insurance premium.

In some ways, a CDS measures an asset, or company’s default risk.

This implies — the higher the CDS yield, the more expensive insuring a riskier asset.

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Top Ten Attributes of Great Fundamental Investors

Top Ten Attributes of Great Fundamental Investors

The Top Ten Attributes of Great Fundamental Investors by Michael J. Mauboussin.


The following is an excerpt of the full report:

“Perhaps the single greatest error in the investment business is a failure to distinguish between the knowledge of a company’s fundamentals and the expectations implied by the market price.”

The world of investing and business has seen a great deal of change in the past 30 years.

This report shares thoughts on the ten attributes of great fundamental investors. Accounting is the language of business and you need to understand it to appreciate economic value and to assess competitive positioning. Investors face a slew of psychological challenges.

Perhaps the most difficult is updating beliefs when new information arrives. Position sizing and portfolio construction still do not get the attention they warrant. The substantial shift from active to passive management has profound implications for the investment industry.

I started on Wall Street 30 years ago today…”

Read the full report [PDF] here.


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