Commerz's trusty computer
Article Abstract:
Commerz International Capital Management's chief investment officer Heinz J. Hochmann uses computers to guide his company's investment decisions, but computers seem to make as many errors as humans do. Computers tend to emphasize historical patterns while humans take into account a variety of data that may or may not be relevant. Computers also make decisions that may not pay off in the short term but which will usually work to the advantage of the long-term investor. The computer at Commerz suggested that Commerz's equity strategy should aim toward the French stocks. Commerz placed much of its $2.8 billion portfolio in the French market which has been a fairly reliable market in 1992. The computer also advised an investment strategy that underinvested in the US and overinvested in Japan. While the computer can make errors, Commerz outperformed the Morgan Stanley Capital Index in the last three years.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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I.B.M. bonds hit by revamping: but a dividend cut may ease pressure
Article Abstract:
IBM announced a restructuring on Tuesday, Dec 15, 1992, including a $6 billion charge in the 4th qtr. On Wednesday, prices of IBM's bonds fell sharply as yields rose 10 to 15 basis points or more in comparison with Treasury securities. Moody's Investors Service says it will place $18 billion of long-term IBM debt under review for possible downgrading. One trader says the spread between IBM yields and comparable Treasury yields has already brought IBM's credit rating down in the view of traders and investors. Traders say a proposed reduction in IBM's dividend could take pressure off the bonds because IBM's financial outlook would be improved. The price of IBM's stock fell to a 10-year low on Tuesday, down $6.75 to $56.125.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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I.B.M. sale sets corporate record; $1.8 billion raised as size is increased
Article Abstract:
IBM broke its own record for an investment-grade corporate issue with its $1.8 billion bond sale on Jun 8, 1993. In 1992, the company set the record with a $1.65 billion issue. Underwriters, led by Morgan Stanley & Co, increased the size of the issue from its original price of $1.5 billion because of strong demand for IBM bonds. The price of the negotiated issue comprises two parts. The seven-year bonds that were due in 1990 were priced for a 6.43 percent yield, 70 basis points higher than the comparable Treasury note. The 20-year bonds that are due in the year 2013 were priced to yield 7.57 percent, 65 basis points higher than the comparable Treasury bond.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1993
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