Kaminsky's Call: The Importance of the Syndicate Calendar
Morgan Stanley, Vice Chairman
Interest rates, earnings, fund flows—they're all important to watch when making investment decisions.
But as we premiere "The Strategy Session" today, my "Call-to-Action" is to focus on a crucial but often overlooked corner of the capital markets: the syndicate calendar. Here's why.
The syndicate calendar is where new stock offerings are announced and eventually priced.
Why should you care? Because even if you're not in the market for an IPO, the health of the syndicate calendar is often a great indication of where the broader markets will go.
Marc Howard, a portfolio manager during my stint at the hedge fund JRO Associates, and arguably one of the best traders of all-time, used to watch the syndicate calendar to formulate what he called "intangible analysis," a sort of study in confidence.
The better an IPO performed, Howard would say, the better money managers felt, and as a result, they would put more capital to work buying new stocks and sending markets higher.
The opposite was also true. A portfolio manager who just got burned on a new issue was less likely ante up for more.
In short, the calendar can make or break confidence, and a market that lacks confidence is one that cannot move higher.
"The Strategy Session"premieres at noon ET, with special guest, Morgan Stanley
Chairman, John Mack.
Gary Kaminsky does not hold any equity positions.
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