In this month's Municipal Strategy Report we discuss the alarmingly low level of the VIX and its increasing relevance to the monetary authorities. We cover some of the various reasons why the VIX has descended to these levels, its implication for financial market stability, and the need for investors to watch for early indications of an eventual unwind.
Additionally, the MSR features:
- Forecasted public pension investment returns for 6/30/17, which we made by relying upon asset allocations prevailing at the start of the fiscal year and our estimations of portfolio returns using various market indices. The actual returns just beginning to trickle out for 6/30/17. We believe that investors will benefit from our forecasts while they wait several months (at least) for the complete universe of plans to eventually be fully released. Of specific value to investors will be our calculations regarding how investment returns can be used to estimate the change in a plan’s funded ratio.
- In “Measuring Quality: Value-Based Healthcare Reimbursements and Alternative Payment Models” we look at trends in healthcare reimbursement methods and their impact on issuers.