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Implied in my parody and more explicit in my colleagues’ excellent work on private equity (PE) is a rather bold notion. It’s one we’ve been bandying about for at least a decade, but it seems increasingly relevant these days. Conventional wisdom is you get an expected return premium for bearing illiquidity. Illiquidity is a bad thing, and, all else equal, you need to be paid extra for taking it on. But, what if this is backwards? What if investors will actually pay a higher price and accept a lower expected return for very illiquid assets?

I have a long history of odd conversations about private investing and my thinking about it has evolved over time. When I was much younger (like 25 and working at Goldman Sachs Asset Management) and even more arrogant (can you imagine such a thing?), I thought PE managers and investors just didn’t get it (but, of course, that I did). I thought they believed that their investments were “uncorrelated” to traditional markets...

A haze of smoke has made the skies over Bondi Beach look more like those in New Delhi. The death toll has risen. Bushfires have raged across Australia amid a heatwave that has sent temperatures soaring to record levels more common in the Middle East. The scale of the country’s wildfire emergency has few precedents. But it has been exacerbated by a regrettable lack of leadership from the prime minister, Scott Morrison. Beyond Australia’s shores, his government stands as a reproach to any leaders tempted to follow its lamentable response to the deepening threat of climate change.

Mr Morrison has long been a cheerful volunteer in the divisive climate battles that have ravaged the political landscape in Australia, one of the world’s largest fossil fuel exporters. One of his predecessors, Tony Abbott, made history in 2014 by repealing a national carbon tax. Mr Morrison made international news himself in 2017 when as Treasurer, he brandished a lump...

Australia never had a "catastrophic" fire danger rating until 2009. It was introduced in the wake of the then unprecedented Black Saturday bushfires in Victoria. Catastrophic conditions were forecast for the first time in Greater Sydney last month – on November 12 to be exact.

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Earning his chops as a macro economist on the sell-side, Alberto Gallo has seen the pendulum of risk swing from extreme fear to euphoria. During his tenure at Goldman Sachs and then at RBS where he ran the Global Macro Credit Research product, Alberto provided buy-side clients with key insights on seminal volatility events like the Global Financial Crisis and the Eurozone Sovereign debt crisis. Now, as a Partner at Algebris Investments, Alberto leads the firm’s Macro Strategy effort, a credit-oriented portfolio designed to navigate the ever tricky terrain of present-day markets. Our conversation considers portfolio construction in a world starved of yield, of low cross-asset risk premia, and one in which the potential for more drastic policy response may be on the horizon. Alberto’s views on today’s regime of monetary policy point to the side effects that result from negative rates, as the banking system suffers, and investors are deprived of income. On the changing nature of...