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Investments in exotic assets like art and wine are rare in India.
WHEN investment banks talked about exotic assets in the 1990s, they generally meant tiger-cub or puma economies such as Vietnam or Peru.
So QE is not fuelling inflation, as the monetarists fear, nor is it creating bubbles in exotic assets around the world, at least not very big bubbles.
The global financial system is struggling with tight credit in part because markets are unwilling to buy many of the exotic assets sitting on the books of banks.
Uncovering that mispricing may require specialised knowledge that few investors possess, creating profitable barriers to entry.One of the earliest exotic assets was the catastrophe bond, the provision of back-up capital to insurance companies dealing with earthquakes or hurricanes.
But financial industry players in New York, London, Switzerland and Israel say there is an opening to provide reliable public access for the growing universe of investors who have been willing to sink money into funds backed by exotic assets like palladium and silver.
Similar(48)
THERE was an exotic asset: Nigerian barges.
No longer are they an exotic asset brought in to spice up investors' portfolios.
Investment advisers shared no misgivings about any specific fund or exotic asset class.
But in more exotic asset classes, the long-term expected return may be zero, or at least less than the risk-free rate.And that raises another catch two-and-twenty with alternative assets.
But Sean Peace, the company's chief executive, envisions it as a robust marketplace where musicians can capitalize on their work and investors can find a somewhat exotic asset that could still bring in steady earnings.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com