CFA Society Chicago NewsBrief
Feb. 25, 2014

How millennials are investing after the financial crisis
The Street
Although Millennials have often been portrayed as spoiled and entitled, recent studies have contradicted those stereotypes. In fact, the younger generation of investors in their 20s and 30s are very concerned about their financial future. Millennials are seen as the most conservative investors since the World War II generation that suffered through the Great Depression. According to a recent survey by UBS, Millennials (ages 21-36) hold more than 50 percent of their assets in cash, and less than one-third in equities.More

The Chicago Sun-Times' 'most influential' woman in Chicago business
CFA Chicago
Diane Swonk, Chief Economist at Mesirow Financial, is one of the most respected economists in the world and among the most quoted in the financial press. In addition, as advisor to the Federal Reserve Board and regional Reserve Banks, she is a Fed insider who can offer valuable insights on FOMC decisions, as well as economic trends. Join CFA on March 26 at 12 p.m. at The Chicago Club for the Distinguished Speaker Series featuring Diane Swonk.More

Accolades from all around: David Rosenberg continues to impress
CFA Chicago
Join CFA Chicago on Tuesday, April 29 from 12 - 1 p.m. for the Distinguished Speaker Series featuring David Rosenberg, Chief Economist and Strategist for Gluskin Sheff and Associates. Fees for members are $45 dollars, the student-members fee is $10, and non-members are welcome to join for $55. This series also qualifies for credit under the guidelines for the CFA Institute Professional Development Program.More

You don't have to be out of work to 'explore your options'
CFA Chicago
Meet with representatives from Chicago's top investment firms at one of our most popular career development events of the year. Representatives from Kaplan Schweser will also be present to provide candidates with information on their CFA review courses and services. Join CFA Chicago on March 21 at 11 a.m. at The Standard Club for endless networking opportunities, speed resume critiques, speed LinkedIn profile critiques and for more information on the CFA Chicago eMentor program.More

Book review: In Bed with Wall Street
CFA Chicago's Enterprising Investor
In Bed with Wall Street: The Conspiracy Crippling Our Global Economy portrays the financial crisis of 2008–2009 as a failure of regulation and oversight. The author contends that while the industry’s watchdogs focused on small firms’ petty infractions, the leaders of major institutions escaped retribution for irresponsible practices that brought the global financial system to the brink of collapse.More

Sentinel's Bloom argues he was early victim of collapse
Bloomberg
Eric A. Bloom, who presided over Sentinel Management Group Inc.’s collapse seven years ago, has watched as the U.S. economy faltered then rebounded, awaiting judgment on whether he was a victim of the crisis, or one of its causes. The former chief executive officer of the suburban Chicago investment firm may soon get his answer. He faces trial in federal court for his role in what prosecutors claim was a $500 million fraud with more than 70 victims. More

Transcripts detail Fed's struggles amid 2008 financial crisis
Los Angeles Times
The day after Lehman Bros. filed for bankruptcy in September 2008, Federal Reserve policymakers hadn't yet grasped the scope of the financial storm blowing overhead. What was clear to them as they gathered for a regularly scheduled meeting on Tuesday, Sept. 16, was that economic conditions were worsening, according to transcripts released of key Fed meetings that year. "The markets are continuing to experience very significant stresses this morning," said Ben S. Bernanke, then the Fed chairman, arriving late for the meeting, "and there are increasing concerns about the insurance company, AIG." More

CBOE to shut stock-trading venue
The Wall Street Journal
Exchange operator CBOE Holdings Inc. said it will shutter its stock-trading venue because the small exchange no longer fits into its strategic business plan. CBOE, the largest options-exchange operator by market share, will cease to operate its CBOE Stock Exchange at a date to be determined, according an exchange spokeswoman. "CBOE Holdings has determined it is no longer in the Company's strategic interests to pursue the stock business at this time. It will reserve the right to re-enter the stock business at a future date," the company said in a statement.More

Gross, Gundlach: Contrarians expecting yields to fall
Investment News
The world's biggest bond dealers are showing almost no confidence in the best annual start for Treasuries since 2008. While Treasuries have climbed 1.4 percent this year, Goldman Sachs Group Inc., JPMorgan Chase & Co. and the other 20 primary dealers offered to sell $4.34 of the notes for every dollar the Federal Reserve purchased from the firms in its bond-buying program in the past month, the highest since 2011, data compiled by Bloomberg show. Dealers slashed inventories more than 70 percent from a record in October to a two-year low.More

Yellen seeking new low-rate guidance can turn to Fed forecasts
Money News
As Janet Yellen seeks to forge a consensus on a new strategy for communicating the Federal Reserve’s intention to keep rates low, she can reach for a six-year-old old tool: the Fed’s quarterly forecasts. Policy makers plan to abandon their promise to hold interest rates near zero at least as long as unemployment remains above 6.5 percent, according to minutes of their January meeting. With the jobless rate dropping to 6.6 percent and the economy still in need of support from the Fed, the strategy is nearly obsolete. More

How millennials are investing after the financial crisis
The Street
Although Millennials have often been portrayed as spoiled and entitled, recent studies have contradicted those stereotypes. In fact, the younger generation of investors in their 20s and 30s are very concerned about their financial future. More

Sales of Chicago companies trigger some uncomfortable flashbacks
Crain's Chicago Business
A recent string of buyouts of metro Chicago companies has triggered unsettling flashbacks to the 1990s. Those of us who were following Chicago business in those days remember it as a time of loss, when outsiders took possession of some premier corporate headquarters. More

How understanding CEO candor can make you money
CFA Institute's Enterprising Investor
Jason Voss' experience in investment management has taught him that half of the analysis battle is waged in the qualitative realm. Chief among these qualitative concerns is the honesty and character of management.More

Chicago's GTCR beats European buyout bids for Callcredit
Financial News
GTCR has agreed to buy Callcredit from European mid-market buyout firm Vitruvian Partners. The U.S. firm beat an early bid for Callcredit from Permira and a later stage bid from Charterhouse Capital Partners, according to two separate people familiar with the matter. Although financial terms of the deal were not disclosed, it is understood that GTCR will pay in excess of £480 million for the company.More

Hedge funds turn bearish on S&P 500 as VIX advances
Bloomberg
Investors using Standard & Poor’s 500 Index futures turned bearish this month for the first time since September 2012, concerned that emerging-market turmoil and signs of slower growth will drag equities down. Hedge funds and other large speculators have been net short for the last two weeks, wagering that the S&P 500 (SPX) will decrease in value, according to data compiled by Bloomberg and the U.S. Commodity Futures Trading Commission. The Chicago Board Options Exchange Volatility Index, used to hedge against S&P 500 moves, rose above its average since 2012 last week as investors sought protection against a slide in stocks. More