The next crisis: Some thoughts on shapes, paths and catalysts. It is said that Generals spend their peacetime planning on how they would have fought the last...

Morphic Asset Management

Ellerston Capital

The next crisis: Some thoughts on shapes, paths and catalysts. It is said that Generals spend their peacetime planning on how they would have fought the last war better. Post the 2008 GFC a number of regulations have been introduced to reduce systemic risks by tightening the regulations on the banking sector and curtailing their activities. Concurrently and independently, there has been heightened demand for yield related investments and for products that would have protected investors in 2008. Thus we have seen the emergence of more Risk Parity investment models and tail hedge products. At Morphic, we think these seemingly unrelated activities are preparing the scene for the next financial crisis, a crisis that will arrive (based on history) after a number of US rate increases. October the 15th 2014 provided us a snapshot of how these changes may combine to produce results none of the parties expected on their own. For the full piece, please click here: (VIEW LINK)


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Morphic is a Sydney-based investment manager that has a strong record for delivering high risk-adjusted returns from investing in global equities in a way that doesn’t harm the environment, society or people.

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