A better way to unlock opportunities

In their latest paper, “Breaking (up) news: How current and forward-looking information impact US Treasury yield dynamics”, Dr Maximilian Stroh, CFA, Head of Research, and Dr Matthias Apel, Portfolio Management Multi-Asset, find that there’s tangible predictive value in systematically analysing the forward-looking component of central bank news. In this interview, they explain their research and provide a behind-the-scenes look at how they use LLMs to deliver robust results.

What is research at Quoniam? Our research process is science-based and model-driven, setting us apart from traditional investment managers. In this interview, Dr Maximilian Stroh, CFA, Head of Research, explains how Quoniam’s approach leverages advanced quantitative models to consistently uncover information edges and drive investment performance.

In this interview, Carsten Rother, Co-Head of Research Forecasts, explains how smart factors work and how they differ from the basic, often one-dimensional factor definitions used by many other approaches.

Dr Axel Groß-Klußmann in Quoniam’s team Research Forecasts set out to find the best approach to analysing daily news sentiment scores for over 1,000 economic topics. The neural network models are competitive when it comes to explaining stock market movements, currency changes, bond yields and predicting economic growth. His work has recently been published in Digital Finance.

The low volatility anomaly explains the advantages of low volatility investing. An additional benefit: The lower the volatility, the greater the compounding of portfolio returns. In their new white paper, Carsten Rother and Dr Xavier Gerard, CFA, find that using a low volatility approach in emerging markets can significantly reduce the risk of the market portfolio, making the compounding effect exceptionally powerful.

Can investors in corporate bonds do good and earn an attractive return at the same time? That was what Quoniam experts Dr Desislava Vladimirova and Dr Jieyan Fang-Klinger set out to determine in their recent research paper, Bonds with Benefits: Impact Investing in Corporate Debt, recently published in the Financial Analyst Journal. We spoke to them about their research, what they found and what it means for investors.