Should Credit Investors Expect More Negative Headlines in the Months Ahead?
Yes. The combination of rising interest rates and a deteriorating earnings outlook is likely to generate ample negative headlines about credit in the months ahead.
Research Publications Archive
Endowment Governance: Aligning Foundation Investments and Mission
Drawing on research that Cambridge Associates has conducted with major grant-making foundations, this paper discusses the shifting mission-aligned investment landscape and the importance of governance in developing and overseeing a mission-aligned investment program. We lay out important steps in the mission-alignment process to define the scope of the commitment, structure, key milestones, and measures of success.
Solvency Beyond Relief: Unlocking the Full Potential of SFA Program Assets
The American Rescue Plan Act of 2021 included substantial relief funds for the most troubled US multiemployer pension plans through its Special Financial Assistance (SFA) program. This paper looks at how multiemployer plans have a unique opportunity to improve their solvency through 2051 and beyond by optimizing how they invest both SFA relief funds and their existing plan assets.
Quantitative Tightening Raises the Risks for Markets
With inflation running at multi-decade highs, monetary policymakers are united in one of the most aggressive tightening campaigns in decades. Most central banks have already significantly increased policy rates this year, and some are unwinding their massive balance sheets, also known as quantitative tightening (QT). In this paper, we review what is known about the current state of central banks’ balance sheets and their operations, discuss some known uncertainties of QT’s impact on financial markets, and consider QT in the context of the current market environment.
Optimizing Wealth Transfer for Families: A Focus on Next Gen Investors
Most families of significant wealth inevitably grapple with intergenerational wealth transitions. While shifting the responsibility for a family’s long-term financial health can be a challenging endeavor, generational transfers are also an opportunity for families to take a fresh look at their financial goals. With this in mind, we advocate a three-part framework for families seeking to integrate members of the next generation into the wealth management process, which focuses on engagement, education, and empowerment.
Will Brazil’s Presidential Election Undercut the Country’s Recent Strong Equity Performance?
No, we don’t think so. While there may be higher-than-typical market volatility around the run-off election on October 30, we expect economic issues will be the primary driver of Brazilian equities in the months that follow. On balance, we see these issues as neither overly positive nor negative and recommend that investors maintain Brazilian allocations in line with their policy.
US Private Equity Looking Back, Looking Forward: Ten Years of CA Operating Metrics
Reflecting on the last ten years of analyses, we have seen the industry continue to evolve, from Private Equity 1.0 to 2.0, marked by increased sophistication in every aspect of finding, analyzing, and operating companies. With this evolution, private equity has also grown in importance and delivered strong absolute and relative returns. Our analyses have highlighted four key themes: private equity outperformed public markets, the tech sector was a clear winner, top-line growth was a driver of superior returns, and small-cap companies continue to demonstrate promise.
Comparative Asset Allocation and Total Return: UK Foundations and Endowments
Our biannual report summarizes asset allocation and total investment performance for 22 of Cambridge Associates’ UK foundation and endowment clients.
Has the Attractiveness of Gilts Improved for UK Investors?
Yes. We believe the attractiveness of UK government bonds has improved relative to just a month ago.
Investment Governance: Creating a Framework That Works for a Family
Investment governance plays a critical role in the ability of families with substantial wealth to define their financial objectives and formulate a strategy for a diversified portfolio. This paper provides an overview of investment governance that families can use in the development of their own investment decision-making framework.