Content (104)

  • Equity market downturn- The path forward

    White papers

    Equity market downturn: The path forward


    In the post-Volcker era, the Federal Reserve (Fed) has typically exhibited a vigilant approach to fighting inflation.  Whenever labor market tightness appeared and inflation was beginning to approach its target rate of 2% Core PCE,  the Fed would often spring into action with rate hikes. This cycle, however, has been unique, with the Federal Reserve  instead permitting inflation pressures to build-up rather than promptly stamping them out.

  • Unraveling the decline

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    Equity market downturn: Unraveling the decline


    In the few months since March 16, when the Federal Reserve (Fed) finally started hiking policy rates in response to spectacularly high inflation, U.S. equities have tumbled. Since Fed liftoff, the S&P 500 has fallen 13%, bringing the total decline since the market’s peak in early January to over 21%—almost erasing all last year’s gains.

  • Fighting inflation

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    Fighting inflation: What the latest Fed move means for investors


    The first month of summer came in hotter than expected. Data released in June showed that annual headline CPI inflation—previously thought to be cooling—had touched a new 40-year high. 

  • A compelling entry point for MBS

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    A compelling entry point for MBS


    Mortgage-backed securities (MBS) opened 2022 with drawdowns not seen in 40 years and high volatility that tracked the MOVE Index, a measure of uncertainty in the bond market. 

  • Principal - Chinas stimulative policy actions-Turning the tide for investors

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    China’s stimulative policy actions: Turning the tide for investors


    China’s ongoing struggles with COVID-19 and the country’s lackluster policy response have dismayed investors. In fact, by the end of April, MSCI China had dropped 18% since the start of 2022, credit spreads had widened meaningfully, and the renminbi (RMB) had depreciated almost 4%. However, a series of weak economic numbers appear to have alerted policymakers to the urgency of stabilizing growth.

  • The road to recession- Attempting to time the next economic downturn

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    The road to recession: Attempting to time the next economic downturn


    With the struggles from the Global Financial Crisis (GFC) still fresh in policymakers’ minds, the 2020 COVID-19 recession was fought proactively, with every tool available. After trillions of dollars in fiscal and monetary stimulus, protracted economic crisis was avoided. 

  • Principal - EMD

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    Why now may be the time to buy EMD


    We maintain that EMD assets currently exhibit an entry opportunity as both an undervalued and under-owned asset class, offering the dual advantage of commodity exposure, as well as a more complete policy adjustment than developed markets, with regards to upcoming inflation risks. The potential benefits of EMD include Alpha opportunities from a diversified landscape, diversification potential, and the potential for attractive risk-adjusted returns.

  • Identifying alpha opportunities

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    Identifying alpha opportunities in sponsored and non-sponsored middle market direct lending


    Investors often ask whether lending to private equity sponsored or non-sponsored companies offer the best risk adjusted return potential. It’s an interesting question, as each channel has distinct tradeoffs.

  • Ukrainian crisis: European banks are resilient

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    Ukrainian crisis: European banks are resilient


    The Russian invasion of Ukraine should not have a material, direct adverse effect on European banks. Only a few European banks have substantive exposures to the Russia/Ukraine/Belarus space, and those exposures do not impact banks’ capacity to service their AT1 capital securities.

  • Principal-Post liftoff investing

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    Post liftoff investing: Adapting to a hawkish Fed


    For more than a decade, investors have enjoyed supportive financial conditions. The Federal Reserve (Fed) has provided clear forward guidance, their balance sheet has expanded, and interest rates have remained low. For businesses, this has been an era of easy money for new projects, expansion, and mergers and acquisitions (M&A). For everyday individuals, rates on mortgages and personal loans have been attractive, boosting home prices and debt levels. All in all, this has driven a long period of steady economic growth and healthy returns.

  • Principal-En-flation

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    ‘En-flation’: The heightened risk of inflation in increasingly environmentally conscious economies


    As surging energy prices hit the headlines, limited renewable energy infrastructure means that, in the short-term, it is possible countries will shift back towards traditional fossil fuel extraction. Yet, in the medium-term, given rising appreciation for the importance of energy security, there will be a renewed focus and increased public capital allocated to the energy transition.

  • Listed infrastructure: Investing in a sustainable future

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    Listed infrastructure: Investing in a sustainable future


    Listed infrastructure is inherently aligned with many client sustainability objectives. First and foremost, these companies exist to provide the basic services that are fundamental to the functioning of our societies. Access, affordability, safety, and reliability are all important social objectives related to the products and services that infrastructure companies offer. In delivering these services, companies also have a responsibility to treat the environment in a manner that won’t jeopardize their ability to deliver these essential services over the long term.