Our Clients

16.06.2021

In Action:
Why are 10y US yields down? Two expert views

DataTrek is Wall Street's go-to commentary for differentiated & actionable investment ideas. Their daily note offers a unique blend of market insight & data-driven analysis.

In that respect, DataTrek & Quant Insight offer the same output but arrive there via two distinct processes. Nick & Jessica between them offer 40 years of experience in the investment industry. Quant insight employs a proprietary version of PCA to show the macro profile of any financial asset.

How macro factors explain the variance of stocks, bonds & currencies; valuation gaps (the difference between spot & actual price) to flag potential trade ideas; & regime shifts as the macro environment changes.

Human intelligence & experience remain an invaluable asset but, in the modern & increasingly complex world, adding in a machine driven framework can only add value to the investment process. This is the first Quant insight / DataTrek joint venture, focusing on 10y US Treasury yields. Summary below, full article via the pdf link at the bottom. Further JVs will follow.

11.05.2021

Featured:
Bloomberg

The latest analysis from Bloomberg's John Authers pulls together the reaction to a weak US Payrolls report, & the importance of the current inflation narrative. He cites Qi analysis on global equity markets & their sensitivity to inflation expectations.

16.06.2021

In Action:
Why are 10y US yields down? Two expert views

10-year Treasury yields have been bucking consensus ever since the start of Q2 2021, moving lower even as inflation chatter has only grown louder. History and current macro drivers explain why this is happening.
DataTrek Research believes Treasury prices anchor on long-run historical inflation trends. Convincing this market that the next 10 years will be different from the last decade could take a long time. It took 25 years, for example, for Treasuries to fully reset after the 1970s.
Quant Insight’s proprietary data analysis shows oil prices need to rise materially – and quickly – from here to push yields higher. And even if US equity markets are calm just now, there is actually a relationship between credit concerns in other markets and declining Treasury yields.
Bottom line: 10-year Treasuries don’t trade exclusively on current US inflation data. They never have. To predict their next move, you need to look at a wide range of other macro drivers.

11.05.2021

Featured:
Bloomberg

Read the John Authers article here

Qi will flag, in real time, when inflation moves from being a tailwind for risky assets, to a headwind.
The original work can be seen here

«‹4 5 67