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The Credit Crisis:
»Reality returning to Normal«
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Of course, I too hope that the recession will turn out to be mild. Additionally, I do not wish the deposit guarantee funds of the German private banks to collapse. Moreover, I also do not wish a restriction on the circulation of loans as well as a complete loss of confidence in the monetary system to make everything still more negative. On the contrary, what I wish are lasting insights and consequential measures based on this experience and of the following nature:
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Risks will be called by name in the future and not assessed by precursory, external rating agencies …
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Loans will again be granted with business-like care and interest charges will fairly reflect the risk …
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The term »secured capital investment« will only be used in a limited way and managers will politely and regretfully decline if capital investments are complicated and not transparent …
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Unnecessary capital market activities will simply be stopped. Instead of that, highly paid investment bankers will strive to return to »private banking« after their employers have noticed that in the end those have gambled away their own capital …
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The future belongs to banks and insurance companies with sustainable core businesses. Capital investors, whether private or institutional, realise that profit miracles have never existed and are starting to accept the profits given …
-
And whoever still believes that the risk limits of the value at risk describe the real potential for losses will be chased out of the company by their superiors …
If these are all the consequences of the credit crisis then I am satisfied because then it will mean:
»Reality returning to Normal«
I will simply allow myself the liberty of smiling a little at the unimaginable events in the course of the credit crisis. You certainly will not think badly of me if you comprehend how much endurance has been demanded of me in the last years to defend the conservative direction of Bantleon, the bond manager, in the face of all the performance promises in the world.
I am, therefore, proud of the fact that the bond assets entrusted to us have remained completely spared from any losses and have achieved an average capital appreciation of almost 6 % because of our management.
Yours Jörg Bantleon
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|
|
The Credit Crisis:
»Reality returning to Normal«
|
Of course, I too hope that the recession will turn out to be mild. Additionally, I do not wish the deposit guarantee funds of the German private
banks to collapse. Moreover, I also do not wish a restriction on the circulation of loans as well as a complete loss of confidence in the monetary
system to make everything still more negative. On the contrary, what I wish are lasting insights and consequential measures based on this experience
and of the following nature:
-
Risks will be called by name in the future and not assessed by precursory, external rating agencies …
-
Loans will again be granted with business-like care and interest charges will fairly
reflect the risk …
-
The term »secured capital investment« will only be used in a limited way and managers will politely and regretfully decline if capital investments are complicated and not transparent …
-
Unnecessary capital market activities will simply be stopped. Instead of that, highly paid investment bankers will strive to return to »private banking« after their employers have noticed that in the end those have gambled away their own capital …
-
The future belongs to banks and insurance companies with sustainable core businesses. Capital investors, whether private or institutional, realise that profit miracles have never existed and are starting to accept the profits given …
-
And whoever still believes that the risk limits of the value at risk describe the real potential for losses will be chased out of the company by their superiors …
If these are all the consequences of the credit crisis then I am satisfied because then it will mean:
»Reality returning to Normal«
I will simply allow myself the liberty of smiling a little at the unimaginable events in the course of the credit crisis. You certainly will not think
badly of me if you comprehend how much endurance has been demanded of me in the last years to defend the conservative direction of
Bantleon, the bond manager, in the face of all the performance promises in the world.
I am, therefore, proud of the fact that the bond assets entrusted to us have remained completely spared from any losses and have achieved an average capital appreciation of almost 6 % because of our management.
Yours Jörg Bantleon
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Current
Comment
Quo vadis US-Konsum?
Comment
Das Deleveraging der Bankbilanzen und
seine Konsequenzen für die Realwirtschaft
Interview
Jörg Bantleon im Gespräch mit portfolio portrait
Additional Reporting
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In focus
BANTLEON CASH FORMULATES THE STANDARD FOR INSTITUTIONAL MONEY MARKET INVESTMENTS:
systematic management, no clumping risks, high liquidity, daily transparency and con- stant additional return.
The money market funds are based on BANTLEON RETURN – one of the most successful and reliable German bond funds. The building blocks of return which are duration, money market curve, spread and inflation indexation are managed individually here and almost equally weighted. BANTLEON CASH adapts this immunisation strategy to the money market. Success is a constant additional return in comparison with a 3 month term deposit.
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