Readings: Rupee strength, Top Dealmakers, Carbon trading
- Economist: The uncomfortable rise of the rupee
The RBI already circumscribes the freedom of firms to raise money abroad, and in October the regulator put a freeze on “participatory notes”, an indirect way for foreigners to play the Indian stockmarket.
Might it go further? In the 1990s Chile threw some “sand in the wheels” of international finance by forcing foreign investors to deposit a fraction of their money directed toward the country in an interest-free account. The encaje, as it was called, remains the most fashionable and widely studied experiment in capital controls. It probably helped to deter short-term investments. But the overall volume of inflows did not slow and Chile’s real exchange rate continued to appreciate.
The other Chilean lesson from that period is more orthodox and thus less talked about. The government showed admirable fiscal restraint, which relieved some of the upward pressure on domestic prices, and also left the exchequer with enough money and credibility to cushion the economic downturn when foreign capital eventually turned tail in 1998.
- NY Post: A Gas House Gang
Hedge fund billionaire Paul Tudor Jones has partnered with several big Wall Street firms and The New York Mercantile Exchange to form a new electronic venue for trading carbon greenhouse gases and other emissions.
The global carbon market is already about $30 billion and some analysts estimate that it could grow into a $3 trillion market over the next 20 years.
- Always On: The AO Top Dealmakers ‘07
Institutional Public Investors
Asset management firms of all stripes (mutual funds, hedge funds, etc.) fall into this category. Besides investing in technology stocks, they may also become limited partners in private equity firm funds.
1 Fidelity Management & Research
2 T. Rowe Price Associates, Inc.
3 Wellington Management Co. LLP
4 Capital Research & Management Co.
5 AllianceBernstein LP
6 Capital Guardian Trust Co.
7 Vanguard Group, Inc.
8 Gilder, Gagnon, Howe & Co. LLC
9 Goldman Sachs Asset Management LP (US)
10 Wells Capital Management, Inc.
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