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Quantitative

Quantitative

Quantitative or quant models or analysis refers to a way of analysing something that is based entirely on numbers / statistics. Its counterpart is qualitative analysis.

Often investment managers employ a mix of the two methods. For example, quantitative screens are useful to reduce the investment universe to a size that allows qualitative analysis to be more focused.

Quantitative easing

Quantitative Easing, often abbreviated to QE, is a term used to describe the purchase of debt, usually government debt, by central banks (such as the Bank of England, the European Central Bank (ECB) and the Federal Reserve). The idea is that, buy buying this debt from commercial banks, this frees up the commercial bank’s balance […]

QT

QT is an acronym for quantitative tightening – the reverse of quantitative easing. Central banks can shrink their balance sheets through QT, either passively – by allowing bonds to mature and not replacing them – or organically – by selling them.

Econometric

Econometric analysis or econometrics is the application of quantitative analysis to economic data. It tries to derive predictive relationships from factors like unemployment and economic growth so that you can use one measure to predict another.

CSPP

CSPP is an abbreviation for Corporate Sector Purchase Programme – the European Central Bank’s programme for buying bonds issued by companies – a policy that extends Quantitative Easing beyond purchases of government debt. The CSPP was announced on 10 March 2016 and activity started at the end of June 2016.

Qualitative

Qualitative analysis looks at the touchy-feely elements of what makes a business work – things like the quality of management, business ethics and corporate governance standards. Its counterpart is Quantitative analysis. Often investment managers employ a mix of the two methods. For example, quantitative screens are useful to reduce the investment universe to a size […]

Systematic Macro

Systematic Macro funds use quantitative (number based) models to try to predict changes in the prices of assets. The system generates the investment ideas. These models are trying to take advantage of market inefficiencies that arise because we humans don’t always invest rationally. Some of these strategies will be trend following. For example, investing on […]